JPMorgan CEO Jamie Dimon described the U.S. economy as being in a “good moment,” according to a Wall Street Journal interview cited by BlockBeats on Oct. 20. He pointed to strong corporate profits, low unemployment and generally moderate leverage among companies and consumers.
Risks beneath the strong data
Dimon also cited risks that he said are building beneath the current strength, including years of sticky inflation, large fiscal deficits and uncertainty linked to overseas wars.
Stress scenarios are not a forecast
JPMorgan has prepared for extreme scenarios including a 40% equity-market decline and bond credit spreads widening by two to three times. Dimon said the bank’s preparations are not a prediction that those events will occur or an indication of when a downturn would begin.
Timing remains uncertain
He said the timing and trigger of a downturn are difficult to determine because multiple factors can combine to produce one.
Source: BlockBeats flash, citing a Wall Street Journal interview with Jamie Dimon.