The CEO of JPMorgan Chase (JPM), Jamie Dimon, warned that he sees an “extraordinary quantity of complacency” on the markets after investors have fallen back their “day of liberation” losses, stressing that the risks of higher inflation and even stagflation are always higher than people do not think so.
“The market fell by 10%, returning 10%,” he said. “I think it’s an extraordinary complacency.”
The boss of the largest bank in the country discussed everything, the prices of President Trump and the state of the American economy in the future of the banking industry and its reflections on the crypto during the annual JPMorgan event for investors in Manhattan.
On a subject, Dimon did not give a firm answer: when he plans to retire as CEO.
When he was asked why there would not be another decade, he reminded investors that he planned to remain as executive chairman of the JPMorgan board of directors for a certain time after leaving his role as CEO.
“Obviously, it is on the board of directors. If I am here for four more years and perhaps two others, three as Executive President, it is long. It is like a large part of the current value of the world.”
The CEO of JPMorgan Chase Jamie Dimon, on “Mornings with Maria” with Maria Bartiromo at Fox Business Network on April 9 (Photo by Noam Galai / Getty Images) ·Noam Galai via Getty Images
The 69 -year -old man first involved that his time as a JPMorgan boss ended at the event of the day of investors from last year, when he recognized that he would probably leave his role in “under five years”. Last January, he said that his “basic case” had to stay for a few more years.
When an analyst pressed him for a more specific calendar on Monday, he said that “the intention was the same as we said last year”.
His comments were much more pointed out during the discussion of macroeconomic subjects. Dimon argued that the full effect of the Trump administration prices is not yet apparent, and that even at their current levels, the tasks are “quite extreme”.
President Trump has interrupted many higher tasks on world countries, including China, while his team is negotiating trade agreements, but a reciprocal reference rate of 10% remains in place in all areas, in addition to the specific tasks for certain industries.
Find out more: The latest news and updates on Trump’s prices
Trade has created a lot of risks, he said, noting that the risks of inflation increase and that stagflation is higher than people think. The chances of stagflation – which refers to a recession with higher inflation – “are probably twice” which the market expects, he added.
Geopolitical risk is also a concern. It’s “very, very, very high. How it goes over the next few years, we don’t know,” Dimon said.
He was not the only boss of Big Bank making new warnings on Monday on the future effects of prices.
The CEO of Citigroup (C), Jane Fraser, said in a blog article that “uncertainty remains”.
“Companies stop decisions, delay the CAPEX and hold the hires. Many are preparing for the effects of the second and third order, shocks of demand for suppliers’ uncertainty,” she added.
She noted that “we are entering a new phase of globalization – a less defined by cooperation, and more by a strategic personal interest. Long -standing hypotheses are disputed, not only by tariff announcements, but by a deeper shock of confidence. The short -term impact is already felt, and the long -term trajectory is rewritten in real time.”
Folder photo: Jane Fraser, CEO, Citi, speaks at the World Conference of 2023 Milken Institute in Beverly Hills, California, United States, May 1, 2023. Reuters / Mike Blake / ·Reuters / Reuters
JPMorgan offered a sign that things can slow down for some customers during the current quarter.
He told investors that for the second quarter, he expects lower investment banking costs “at the bottom of the more or less adolescent community” compared to the second quarter of last year, according to the CO-PDG of the Commercial Bank and Investment Troy Rohrbaugh. Investment bankers are counting on companies that conclude their income.
It is estimated that negotiation income is in the “high figures,” added Rohrbaugh.
The bank has retained its forecasts for the year for its crucial loan income, net interest income. It still provides $ 90 billion, plus an additional $ 4.5 billion potential for negotiations, depending on market conditions.
“The prospects are probably slightly better than it was in the first quarter.” Financial director Jeremy Barnum said earlier during the day.
Dimon has also taken the time to rail on the many banking rules established by Washington, largely affirming: “Many of these calculations, as I mentioned previously, are completely asinin.”
The open question of who will lead JPMorgan after Dimon, who has occupied the role since 2006, has had one of the big Wall Street riddle games for years. It is also the “largest idiosyncratic risk factor” for JPMorgan’s actions, Ebrahim Ponawala, a Bank of America analyst last week.
Investors also had the chance to hear the best lieutenants of Dimon, many of whom are considered inside the bank as the most likely to succeed him one day.
“Our northern star generates Alpha,” said Mary Erdoes, head of asset management and heritage. “That’s all we do. All day. We obsessor about each basic point.”
The bank also increased its $ 1 billion technological spending from last year to $ 18 billion.
“We are a growth franchise, and we gain sharing in sharing in companies. We are not big vantors, but we are proud of this performance,” said Marianne Lake, CEO of the vast JPMorgan consumer bank.
With the exception of its home loans division, Lake said that its bank division provides for a 10% reduction in enrollment in the next four and a half years in the light of IA productivity improvements and other technologies.
David Hollerith is a main Yahoo Finance journalist covering the bank, crypto and other areas in finance.
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