The United States economy is in good shape, but there are risks. That said Jamie Dimon, CEO of the major American bank JPMorgan Chase, in an explanation of the second quarter figures. He pointed, among other things, to the stubbornly high core inflation and the geopolitical uncertainties caused by the war in Ukraine. According to Dimon, consumers are also slowly using up their financial buffers as a result of the increased prices.
On the other hand, job growth in the US remains strong and consumer spending continues, albeit at a lesser rate than before, Dimon said. The CEO of the largest bank in the US did not use the word ‘recession’ in the explanation. There were fears in the financial markets that the US economy could slide into recession as a result of the Federal Reserve’s interest rate hikes against high inflation.
Quarterly figures
JPMorgan Chase’s net profit rose 67 percent year over year in the quarter to $14.5 billion. This was partly due to the rise in interest rates, as a result of which the bank had more interest income from lending. It also benefited from the takeover of a large part of the collapsed regional bank First Republic in May of this year. Earnings were under pressure from trading in stocks and bonds.
Ikechukwu Julius Ugwu / Unsplash)
