- Jamie Dimon will raise the prospect of a “major economic storm” to Congress on Wednesday.
- The JPMorgan CEO will also bemoan inflation’s devastating impact on Americans, his written testimony shows.
- Dimon will tout JPMorgan’s critical role in the US economy as well.
JPMorgan CEO Jamie Dimon will tout the US economy’s strength but warn its challenges could end in disaster, during a hearing in front of the House Financial Services Committee on Wednesday.
“The US economy today is a classic tale of two cities,” Dimon wrote in his prepared testimony, published ahead of the Congressional hearing.
He highlighted robust consumer spending, ample job vacancies, and hearty companies, before turning to the other side of the coin.
“Many Americans are being crushed by high inflation eroding real incomes, particularly from higher prices on gas and food,” the billionaire boss of America’s largest bank noted.
Persistent supply-chain issues, Russia’s invasion of Ukraine, and the Federal Reserve shrinking its balance sheet and hiking interest rates are also economic headwinds, he continued.
“Many Americans are feeling the pain, and consumer confidence continues to drop,” Dimon wrote.
“While these storm clouds build on the horizon, even the best and brightest economists are split as to whether these could evolve into a major economic storm or something much less severe,” he added.
Dimon will also defend JPMorgan’s critical role in the economy, according to his written testimony. He will underline that the bank provides vital funding to virtually every sector of the economy and finances critical infrastructure such as schools and hospitals. It also loans American consumers the money they need to buy homes and cars, and start businesses, he plans to say.
Moreover, Dimon will urge House lawmakers not to burden banks with more regulations, when they need to lend freely and access their capital.
“The last volatile year has brought disruption and stress for so many as the world grapples with war in Ukraine, economic volatility and inflation, climate change and energy insecurity, and a pandemic,” he wrote, adding that JPMorgan’s work is especially important in tough times.
Dimon’s latest comments echo the economic outlook he offered in July, alongside JPMorgan’s second-quarter earnings.
At the time, Dimon trumpeted the health of the US economy, but warned that geopolitical tensions, inflation, flagging consumer confidence, the unclear impact of tighter monetary policies on global liquidity, and the war in Ukraine were “very likely to have negative consequences on the global economy sometime down the road.”