JPMorgan CEO Jamie Dimon has warned of ‘very volatile markets’ as the Fed tightens monetary policy.
- In an annual letter to shareholders, the chief executive informed investors were concerned about the steps the US central bank needed to implement to bring an end to its ultra-loose policies.
- Dimon stated that if the Fed implements the right actions, the economy would experience years of growth and inflation would start to decline.
- Last month, the US Fed increased its benchmark interest rate for the first since 2018 as it was seeking to control the highest inflation in 40 years.
- Banks like JPMorgan are expected to benefit from higher rates that would allow them to earn more from loans.
Dimon encouraged the US government to establish a new Marshall Plan to mitigate Europe’s energy dependence on Russia.
DXY up +0.31%, EURUSD down -0.49%
Source: FT
