Jamie Dimon says 'brace yourselves for financial hurricane'

JPMorgan CEO Jamie Dimon urged investors to "brace" for a "hurricane" in the current financial environment, which is dominated by major hurdles such as the Federal Reserve monetary tightening, global supply chain disruptions and record inflation.

"You know, I said there's storm clouds but I'm going to change it ... it's a hurricane," Dimon said Wednesday at a financial conference in New York.

While the economic and financial conditions are looking "fine" currently, nobody knows if the hurricane would be a "minor one or Superstorm Sandy," he said. "Right now it's kind of sunny, things are doing fine, everyone thinks the Fed can handle this. That hurricane is right out there, down the road, coming our way."

Dimon said the "cheap money era" during the coronavirus pandemic came to an end toward the end of last year when supply chain disruptions became more evident and inflation started climbing.

"We've never had QT like this, so you're looking at something you could be writing history books on for 50 years," he said. "Central banks don't have a choice because there's too much liquidity in the system. They have to remove some of the liquidity to stop the speculation, reduce home prices and stuff like that."

Dimon also noted that JPMorgan, the US-based multinational investment bank and financial services company, will be "very conservative" with its balance sheet.