JPMorgan CEO Jamie Dimon says he wouldn't be 'a big buyer of a bank' and sounds the alarm on the economy
- Jamie Dimon criticized the proposed capital rules on lenders as a downside for economic growth.
- The JPMorgan CEO also cited other pressures, such as fiscal deficits and monetary policy.
JPMorgan Chase CEO Jamie Dimon reiterated his opposition to the Federal Reserve's proposed capital regulations, warning such measures could dampen lending and economic growth.
"I wouldn't be a big buyer of a bank," the head of the largest lender quipped during a financial conference on Monday.
The proposed changes would apply to banks with more than $100 billion in assets, requiring JPMorgan to hold 30% more in capital than a European lender, Dimon said.
To comply, the bank, which bought troubled lender First Republic earlier this year, is starting to repurchase stock at lower levels.
"Is that what they want? Is that good, long term?" he added.
But Dimon sees growth as threatened by more than just stricter capital rules, and warned that today's economic strength shouldn't warrant expectations for a years-long rebound.
"To say the consumer is strong today, meaning you are going to have a booming environment for years, is a huge mistake," he said.
While consistent disinflation and a strong labor market have helped Wall Street warm up to hopes for a soft-landing scenario, Dimon has been consistently bearish and named a slew of headwinds that could still capsize the economy's trajectory.
Among key concerns were central bank efforts to limit economic liquidity, especially the Fed's quantitative tightening campaign, and an increasing reliance on fiscal deficits.
"I think there's a false sense of security that those two things will end up being OK. I don't know," he said, during the conference's Q&A.
Added to that, Dimon cited the Inflation Reduction Act, global remilitarization, and greenification of the economy as factors whose influence is hard to gauge, given few historic comparisons. Top of mind is also the war in Ukraine, which has already skewed everything from trade to investing.
"It just puts me on heightened edge of caution," he said, adding: "These things are tectonic differences from what you've experienced since 1945."