- JPMorgan's CEO said he sees trouble ahead for the US economy.
- Banking sector woes, a hawkish Fed, and Russia's invasion of Ukraine make for an uncertain macro forecast.
JPMorgan CEO Jamie Dimon warned investors of looming "storm clouds" ahead for the US economy in the firm's earnings report on Friday.
The bank posted strong results, with record revenue of $38.3 billion handily beating expectations on the back of higher interest income thanks to the US central bank's aggressive monetary tightening campaign.
"The U.S. economy continues to be on generally healthy footings —consumers are still spending and have strong balance sheets, and businesses are in good shape," Dimon said. "However, the storm clouds that we have been monitoring for the past year remain on the horizon, and the banking industry turmoil adds to these risks."
Dimon's warning on the economy doesn't necessarily mean tough times ahead for the firm, as trading desks often thrive on heightened volatility, but the head of the largest US bank is still feeling nervous about a few big headwinds. Banking sector woes, a hawkish Fed, uncertain relations with China, and Russia's invasion of Ukraine all contribute to an uncertain macro forecast, the JPMorgan chairman said.
"The banking situation is distinct from 2008 as it has involved far fewer financial players and fewer issues that need to be resolved, but financial conditions will likely tighten as lenders become more conservative, and we do not know if this will slow consumer spending," Dimon said.
He added: "We also continue to monitor for potentially higher inflation for longer (and thus higher interest rates), the inflationary impact of continued fiscal stimulus, the unprecedented quantitative tightening, and geopolitical tensions including relations with China and the unpredictable war in Ukraine."
JPMorgan stock shot up 7% in Friday's session, trading around $138 per share.