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JPMorgan chief Jamie Dimon sounded the alarm on a possible recession, warning Wall Street to prepare for the threat of rising interest rates even as inflation slows.

A lot of things out there are dangerous and inflationary. Be prepared, Dimon said at the New York Times DealBook Summit in New York on Wednesday.

Interest rates may go up and that might lead to recession,” he added, according to CNN Business.

Dimon’s comments suggest that he doesn’t forecast a rate cut following the next two-day Federal Open Market Committee meeting on Dec. 11 and 12.

Federal Reserve officials have unanimously decided to keep the benchmark federal funds rate at its current 22-year high, between 5.25% and 5.5%, for the past two policy meetings with little indication that theyll slash interest rates moving forward.

Fed Chair Jerome Powell even reiterated during his closely watched speech during the International Monetary Funds policy panel in Washington, DC, earlier this month: “If it becomes appropriate to tighten policy further, we will not hesitate to do so.”

Economists have been divided on what central bankers’ next move is — and whether it means the US economy is in for a soft landing, which will see it skirting a recession, or a hard landing.

“Im cautious about the economy,” Dimon said, per CNN.

The 67-year-old investment banking boss also noted that “inflation is hurting people,” and in a moment of positivity, pointed to the resilient labor market.

Representatives for Dimon at JPMorgan declined to comment.

Economists have cited October’s weaker-than-expected jobs report — when the Bureau of Labor Statistics reported that the US economy added 150,000 positions — as a signal that an interest rate cut is forthcoming.

The unemployment rate is now 3.9%, the agency said, above the Feds 3.8% year-end forecast.

Inflation has also trended weaker than central bankers estimates as Americans see some reprieve from the Feds aggressive tightening cycle, which began in March 2022, when rates were between 0.25% and 0.5%.

By June of last year, inflation peaked at 9.1% and rates have since increased at a pace not seen in 40 years.

The Fed hasn’t cut interest rates in over a year despite falling inflation, which slowed to 3.2% in October, according to the Consumer Price Index, which tracks changes in the costs of everyday goods and services.

The figure marked a drop from Septembers 3.7% advance, though it remains well above the Fed’s 2% inflation target, which the US economy hasnt seen since 2012.

In an interview with Bloomberg TV last month, Dimon suggested that Americans are in for an interest-rate hike as steep as 1.5 percentage points, to a staggering 7%, which would mark the highest federal funds rate sine December 1990.

Dimon’s warnings of a recession echo those of hedge fund titan Bill Ackman, who said just this week that the Fed needs to slash interest rates as early as the first quarter in order to avert a real risk of a hard landing for the US economy.

Ackman told Bloomberg that if the Fed keeps rates around the 5.5% range while inflation trends below 3%, thats a very high real rate of interest.

Whats happening is the real rate of interest, which is what impacts the economy, keeps increasing as inflation declines, said the Pershing Square Capital Management founder.

I think theres a real risk of a hard landing if the Fed doesnt start cutting rates pretty soon, Ackman added, per Bloomberg, noting that hes seen evidence of a weakening economy.

Traders, however, arent fully pricing in a rate cut until the end of 2024s second quarter, in June, Bloomberg reported, citing swaps market data.

The chance of a cut happening in May is some 80%, the data showed.

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Washington state flooding forces entire city to evacuate as rivers reach historic highs

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Washington state flooding forces entire city to evacuate as rivers reach historic highs

National Guard troops went door-to-door on Friday to evacuate a farming city north of Seattle as severe flooding in western Washington state put levees at risk.

Days of torrential rain have swelled rivers to record or near-record levels, as flooding has stranded families on rooftops, washed over bridges and ripped homes from their foundations.

Burlington, a city of nearly 10,000 residents near Puget Sound – a large inlet of the Pacific Ocean in northwestern Washington – was placed under a full evacuation order with people told to leave immediately and move to higher ground.

The Skagit River, a major waterway that flows from the Cascade Mountains through the Skagit Valley before emptying into Puget Sound, surged to a record high of nearly 38ft (11.6m) at Mount Vernon, about 10 miles south of Burlington.

“We haven’t seen flooding like this ever,” said Karina Shagren, a spokesperson for the state’s emergency management division, adding that there had been no reports of injuries or missing individuals so far.

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Pic: Reuters

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Pic: Reuters

National Guard troops and sheriff’s deputies were going door to assist with the evacuations.

Some responders were seen paddling stranded Burlington residents to safety in inflatable river rafts through the muddy floodwaters.

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Later on Friday, the evacuation order was lifted for part of the city, Burlington police department spokesperson Michael Lumpkin said.

However, while water levels appeared to ease a little, Mr Lumpkin said “it’s definitely not an all-clear”.

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Pic: Reuters

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Pic: Reuters

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The intense rainfall was driven by an atmospheric river, a massive stream of moisture drawn from the ocean and carried inland over the Pacific Northwest earlier in the week.

Although rainfall has begun to ease, the National Weather Service has issued a flash-flood warning for the Skagit River basin all the way downstream to its mouth at Puget Sound.

Snohomish, around 40 miles south of Burlington, has also been affected. Pic: Reuters
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Snohomish, around 40 miles south of Burlington, has also been affected. Pic: Reuters

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Pic: Reuters

The swollen waters could put enough strain on levees to cause them to fail, the weather service noted.

“Extensive flooding of streets, homes and farmland will be possible” if levees and dikes give way, it said.

The Burlington-Mount Vernon area in Skagit County continues to be the hardest-hit area, facing extensive flooding from days of heavy rainfall stretching from northern Oregon through western Washington and into British Columbia.

National Guard troops were also dispatched to deliver food and check on stranded residents in a number of communities cut off by flooding in adjacent Snohomish County, south of Skagit County.

The flooding washed out or forced the closure of dozens of roads throughout the region, including most of the Canadian highways leading to the port city of Vancouver in British Columbia.

Parts of northern Idaho and western Montana have also been impacted.

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Trump sued by preservation group over $300m White House ballroom

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Trump sued by preservation group over 0m White House ballroom

Donald Trump is being sued by a preservation group which wants a federal court to halt the construction of a new ballroom at the White House until it goes through multiple independent reviews and wins approval from Congress.

The National Trust for Historic Preservation’s lawsuit represents the most concrete effort so far to change or stop plans for the new $300m ballroom that would be nearly double the size of the White House before the East Wing was demolished.

“No president is legally allowed to tear down portions of the White House without any review whatsoever – not President Trump, not President [Joe] Biden, and not anyone else,” the non-profit organisation’s lawsuit states.

“And no president is legally allowed to construct a ballroom on public property without giving the public the opportunity to weigh in.”

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Pic: Reuters

The ballroom project has drawn criticism from preservationists, architects, and President Trump’s political opponents.

It is among several sweeping changes Mr Trump has made to the White House since he returned to office in January. He has installed gold decorations throughout the Oval Office, and paved over the lawn of the Rose Garden to create a patio similar to the setting at his Mar-a-Lago estate in Florida.

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Pic: Reuters

Commenting on the lawsuit, White House spokesman David Ingle said that Mr Trump is within his “full legal authority to modernise, renovate and beautify the White House – just like all of his predecessors did”.

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Mr Ingle did not specify whether the president was planning to consult Congress at any point.

While nearly every president alters the White House, Mr Trump’s plans are the most extensive since President Harry Truman’s near-total renovation of its oldest section.

Unlike Mr Trump, Mr Truman obtained explicit congressional approval and funding, consulted engineering and arts authorities, and appointed a bipartisan commission to oversee the work.

Mr Trump has stressed that the project is funded with private money, including his own, but that doesn’t change how federal laws and procedures apply to a US government project.

Federal law cites “express authority of Congress” over DC projects.

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Pic: Reuters

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Mr Trump has long maintained that a White House ballroom is overdue, noting that large events are held in tents and guests get wet when it rains.

The lawsuit said Mr Trump never gathered public input and ignored statutes requiring consultation with the National Capital Planning Commission and the Commission of Fine Arts before tearing down the East Wing and starting work on the ballroom.

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Rocket Lab Clears Final Tests for New ‘Hungry Hippo’ Fairing on Neutron Rocket

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Rocket Lab has completed final qualification tests on its innovative “Hungry Hippo” fairing for the Neutron rocket, a reusable design that stays attached during flight and closes again for recovery. This breakthrough brings the company closer to Neutron’s planned 2026 debut and marks a major step in reducing launch costs in an increasingly competitive space indu…

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