By Sam Boughedda
Speaking at the Sanford Bernstein Conference Wednesday, JPMorgan (NYSE:JPM) CEO Jamie Dimon told listeners that there is a financial hurricane down the road and "you got to brace yourself" as the Fed deals with three major items - the Ukraine war, QT, and fiscally induced growth.
Dimon spoke about the current investment climate, stating that for people who are focused on climate change if oil prices continue to rise, "then CO2 won't go down," which is what everyone predicts.
He added that just because people buy less oil and gas, they assume "it's going to go up because all those other countries out there, the poor countries who need oil and gas to feed and heat their citizens will turn off -- will not buy oil and gas, they'll buy coal. That's what's going to happen. CO2 will go up."
"We're not dealing with these challenges," stated Dimon, referring to the Ukraine war, QT, and fiscally induced growth.
"Everyone thinks the Fed can handle this. That hurricane is right out there down the road coming our way. We just don't know if it's a minor one or Superstorm Sandy or Sandy or Andrew or something like that. And you got to brace yourself," remarked Dimon.
As a result, Dimon said JPMorgan is bracing itself and will be very conservative in its balance sheet.
"With all this capital uncertainty, we're going to have to take actions, and I kind of want to shed nonoperating deposits again, which we can do in size to protect ourselves, so we could serve clients in bad times."