Gas prices are rising, grocery prices are shooting up and rent is not much better. Unfortunately, JP Morgan CEO Jamie Dimon believes that these are much more than trends. At a recent financial conference, Dimon told attendees that an economic “hurricane” is making its way to the pockets of average Americans.
“It’s a hurricane. Right now, it’s kind of sunny, things are doing fine. Everyone thinks the Fed can handle this,” Dimon said earlier this week, according to The Hill.
“That hurricane is right out there down the road, coming our way. We just don’t know if it’s a minor one or Superstorm Sandy or Andrew or something like that, and you better brace yourself.”
For the time being, Dimon believes that two events are leading to rising costs across the country. First, he pointed toward Russia’s invasion of Ukraine as the leading cause of rising gas prices. Then, he drew attention toward the U.S. Federal Reserve’s efforts to raise interest rates and reduce its balance sheet to tackle inflation. If not handled properly, there is a belief that these two things could land America in a recession.
Moving forward, Dimon believes that the U.S. should do more to protect European economies that are being hurt by the fighting over Russia’s oil.
“We’re not taking the proper actions to protect Europe from what’s going to happen to oil in the short run,” he added, according to The Hill.
Dimon is not the only person to draw attention to the issues that the U.S. economy is currently dealing with. Recently, Treasury Secretary Janet Yellen raised concerns about the trajectory of inflation across the country.
“Well, look, I think I was wrong then about the path that inflation would take,” she told CNN.
“As I mentioned, there have been unanticipated and large shocks to the economy that have boosted energy and food prices and supply bottlenecks that have affected our economy badly that I didn’t — at the time didn’t fully understand. But we recognize that now.”
