I know it’s hard to think that, but I am not the only one who says so. Mr. Jamie Dimon says so.
I watch JPMC very carefully. JPMC is on one of the biggest US banks. If you look at Dimon’s speech today, he felt that while the economic growth of the US economy will continue for the net 2 quarters , it impossible to predict what will happen after that. Dimon said “After that, it’s hard to predict. You’ve got two other very large countervailing factors which you guys are all completely aware of. You’ve never seen that before. I’m simply pointing out that those are storm clouds on the horizon that may disappear, they may not.” Dimon was referring inflation control by the fed and the reversal of Fed bond-buying policies. As many of you know from my last blog how I felt about the Fed’s decision to hike interest rates. With the intension of trying to fight the inflation there is a real chance that the Federal Reserve accidentally might push the U.S markets and economy into recession. I am super nervous that the Fed may over do the long-awaited interested rate hikes.
The fear of recession is real . I think most Americans feel like it is in the corner. This can be seen by the way the banks stocks are behaving. Generally when Interest rates go up, bank stocks go up. This is because they make more interest-based revenues. The reverse has happened, The Bank stocks have taken a beating investor strongly believe that a recission may be in the corner and the bank stocks will be impacted by that. This is because banks expect losses from the loans they have given out during a recession.