Top banker’s forecast for an economic hurricane

ONE of the world’s most powerful bankers has warned of an approaching economic ‘hurricane’ – and is urging investors and households to ‘brace’ themselves.

Jamie Dimon, the veteran chief of US banking giant JP Morgan, forecasted trouble ahead with the perfect storm of Covid lockdowns, the Ukraine war and the escalating cost of living.

Mr Dimon’s comments were mainly directed at the US, but turbulence in the world’s largest economy would have huge knock-on effects elsewhere.

The New York billionaire told a financial conference yesterday: ‘I said there were storm clouds, big storm clouds. It’s a hurricane.’ Mr Dimon said that currently the weather is ‘kind of sunny’, and that it is expected America’s central bank, the Federal Reserve, can get a grip on rising inflation and slowing growth.

But Mr Dimon, 66, added: ‘That hurricane is right out there down the road coming our way. We don’t know if it’s a minor one or [2012’s] Superstorm Sandy. You better brace yourself.’

Russia’s invasion of Ukraine has caused much of the world to shun its gas and oil imports, pushing up the cost of energy.

In a further worry for businesses and families already struggling with sky-high energy bills, Mr Dimon warned the conflict could push oil prices up to $175 (£140) a barrel.

Currently oil is hovering around $117 (£94) a barrel, up from its pandemic low of just $19 (£15).

And since both Russia and Ukraine are major exporters of grain, the conflict has also driven up food prices.

At the same time China is battling Covid outbreaks, with Beijing imposing strict lockdowns that disrupt factory output and cause chaos for companies all over the world. Inflation hit a 40year high of 9 per cent in the UK in April, and the US and much of Europe is in a similar position.