Jamie Dimon, the chief of JPMorgan Chase, issued a warning concerning U.S. interest rates, stating that they could end up surging over 8 percent over the course of the coming years as our nation’s debt hits record highs, coupled with a number of ongoing conflicts on the geopolitical conflicts make it more difficult to bring inflation levels down. That’s not exactly the kind of good news we want to hear, but that’s where our economy is at the moment, which is why it’s critical to remove Joe Biden from the presidency and get Trump in office.
“Huge fiscal spending, the trillions needed each year for the green economy, the remilitarization of the world and the restructuring of global trade — all are inflationary,” Dimon went on to write in his annual letter to JPMorgan shareholders which was released on Monday.
“These markets seem to be pricing in a 70% to 80% chance of a soft landing,” Dimon stated later on in the letter according to a report by The Wall Street Journal. “I believe the odds are a lot lower than that.”
While Dimon informed his investors that he fully expects the Federal Reserve to do some footwork to avoid a “soft landing,” which is done by carefully bringing down inflation rates without causing a recession, however he’s also been taking steps to get himself ready for a potentially more worrisome outcome, according to the New York Post.
Here’s more from the NY Post:
“Economically, the worst-case scenario would be stagflation,” which would see the economy staying stagnant and “would not only come with higher interest rates but also with higher credit losses, lower business volumes and more difficult markets,” he added.
Still, Dimon said JPMorgan — the biggest bank in America by asset size — “would continue to perform at least okay,” and pointed to the Wall Street giant’s record of nearly $50 billion in profits last year. Despite a sharp rise in interest rates in recent years, the Fed hasn’t even been able to get inflation under 3%.
In a turnaround from policymakers’ earlier statements that there would be three interest-rate cuts this year, Fed Governor Michelle Bowman said on Friday that interest rates may even move higher.
“While it is not my baseline outlook, I continue to see the risk that at a future meeting we may need to increase the policy rate further should progress on inflation stall or even reverse,” Bowman stated while making comments made to a bunch of Fed watchers based out of New York last Friday.
“Reducing our policy rate too soon or too quickly could result in a rebound in inflation, requiring further future policy rate increases to return inflation to 2% over the longer run,” she continued, according to CNBC.
Per the latest Consumer Price Index — which tracks changes in the costs of everyday goods and services — inflation rose 3.2% in February, yet another stubbornly high figure that doesn’t inspire interest rate cuts.
Consumer prices haven’t been reduced year-over-year since Biden propped up his feet in the Oval Office back at the start of January.
Prices for things we need to live our lives has gone up 19 percent since December 2020, which is the month just before Biden shuffled into the White House. Despite his claims to the contrary, Bidenomics has not done jack squat to “reduce the government’s deficit,” a false narrative that is not even remotely accurate. Not. Even. A. Little.
However, Treasury data shows the red ink topped $1.7 trillion in 2023 — a sum that nearly doubled over the course last year. Dimon has also sounded the alarm that the US debt needs to be tackled before it results in a crisis.
“It is a cliff, we see the cliff,” Dimon stated during an interview with Fox in January. “It’s about 10 years out, we’re going 60 miles an hour [toward it].”
Ken Griffin, a hedge fund billionaire, absolutely obliterated the U.S. government over it’s current mounting debt in a letter to his own shareholders just last week. In his own letter, he stated that future generations were going to face dire consequences if our country continues to go down the hole.
“The surging US public debt is a growing concern that cannot be overlooked,” Griffin, founder and CEO of Citadel, penned in his 2023 year-end investor letter released last Monday. “We must stop borrowing at the expense of future generations.”
In the past, we got crazy with spending and printing funny money at the Fed, causing our national debt to go up — at the moment it’s somewhere around $34.58 trillion — which has also been driven sky-high unemployment rates, a decrease in tax revenue brought in, and increases in government spending on stimulus programs. It should go without saying, but this is not sustainable.
“It is irresponsible for the US government to incur a deficit of 6.4% when unemployment is hovering around 3.75%,” he stated, concluding the report.
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