JPMorgan Chase CEO Jamie Dimon warned on Friday that global risks including trade wars and rising interest rates could “derail” the US economy.
He has it right.
“So far, we have a strong economy in spite of these increasing overseas geopolitical issues bursting all over the place,” he said in a Friday earnings call with reporters.
Among the worries, he correctly listed: the trade war with China, Italy’s debt, the tightening credit markets, and the UK’s leaving the European Union, known as Brexit.
“Eventually they may have an effect. No one should be surprised if that happens down the road, Dimon said.”
Of course, the big player here is the Fed and their manipulation of money supply which creates the boom-bust cycle.
The current stock market weakens is a result of such Fed monetary manipulations.
-RW
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