[ad_1]
Jamie Dimon, Chairman of the Board and Chief Executive Officer of JPMorgan Chase & Co., gestures as he speaks during an interview with Reuters in Miami, Florida, U.S., February 8, 2023.
Marco Bello | Reuters
JPMorgan Chase delivered strong profits for the third quarter along with a stern warning Friday from its top executive about the perils the world faces from multiple threats.
“This may be the most dangerous time the world has seen in decades,” CEO Jamie Dimon said in a statement that accompanied the bank’s earnings news release.
The head of the largest U.S. bank by assets cited the ongoing war in Ukraine as well as the attacks Hamas launched on Israel last weekend that he said “may have far-reaching impacts on energy and food markets, global trade, and geopolitical relationships.”
Beyond the military conflicts, Dimon cited the burgeoning national debt and “the largest peacetime fiscal deficits ever” that he said are raising the risks that inflation and interest rates remain high.
Along with the high rates, he mentioned the Federal Reserve’s efforts to reduce its bond holdings. The process, known as quantitative tightening, “reduces liquidity in the system at a time when market-making capabilities are increasingly limited by regulations,” he said.
Dimon recently has said that he has been warning clients about the possibility that interest rates may not only stay elevated but also could rise significantly from here.
“While we hope for the best, we prepare the Firm for a broad range of outcomes so we can consistently deliver for clients no matter the environment,” he said.
JPMorgan Chase showed a $13.15 billion, or $4.33 a share, profit for the July-through-September period, a 35% jump from a year ago. Dimon further cautioned that the performance came from benefits to net interest income and credit costs that likely won’t last.
[ad_2]
Source link
