The economy of the United States is in a good position, but there are risks, according to Jamie Dimon, the CEO of the major American bank JPMorgan Chase, during an explanation of the second-quarter figures.
He pointed out persistent high core inflation and geopolitical uncertainties due to the war in Ukraine as some of the risks. Dimon also noted that consumers are slowly depleting their financial buffers as a result of rising prices.
On the other hand, Dimon stated that job growth in the US remains strong and consumers continue to spend, albeit at a slightly slower pace than before. The CEO of the largest bank in the US did not mention the word “recession” in his explanation. There were concerns in the financial markets that the US economy could enter a recession due to the Federal Reserve’s interest rate hikes to combat high inflation.
In terms of quarterly figures, JPMorgan Chase’s net profit increased by 67 percent to $14.5 billion compared to the previous year. This was partly attributed to the rise in interest rates, which resulted in higher interest income from lending. The bank also benefited from the acquisition of a significant portion of the collapsed regional bank, First Republic, in May of this year. However, the profit was under pressure in equity and bond trading.