Connect with us

Published

on

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.

Continue Reading

World

Former Bank of England governor Mark Carney named prime minister of Canada – succeeding Justin Trudeau

Published

on

By

Former Bank of England governor Mark Carney named prime minister of Canada - succeeding Justin Trudeau

Former Bank of England governor Mark Carney has been named Canadian prime minister after winning the Liberal Party leadership race in a landslide victory.

Mr Carney, who also used to be the head of Canada’s central bank, emerged as the frontrunner in the contest as the country deals with the impact of tariffs imposed by US President Donald Trump.

He ended up winning 85.9% of the vote.

During his victory speech, he told the crowd: “Donald Trump, as we know, has put unjustified tariffs on what we build, on what we sell and how we make a living.

“He’s attacking Canadian families, workers and businesses and we cannot let him succeed and we won’t.”

Mr Carney said Canada would keep retaliatory tariffs in place until “the Americans show us respect”.

Mr Trump’s tariffs against Canada and his talk of making the country America’s 51st state have infuriated Canadians.

More on Canada

The American national anthem has been repeatedly booed at NHL and NBA games.

“Think about it. If they succeeded, they would destroy our way of life… America is a melting pot. Canada is a mosaic,” Mr Carney added.

“America is not Canada. Canada will never ever be part of America in any way, shape or form.”

Please use Chrome browser for a more accessible video player

‘You can’t take our country or our game’

The 59-year-old will replace Justin Trudeau, who has served as prime minister since 2015.

Mr Trudeau announced he was stepping down in January after facing calls to quit from a chorus of his own MPs.

The 53-year-old’s popularity had declined as food and house prices rose.

Mr Carney will now have to decide when to call a general election in Canada – which must take place on or before 20 October.

In 2013, he became the first non-UK citizen to run the Bank of England since it was founded in 1694.

His appointment was popular in Britain after Canada recovered from the 2008 financial crisis faster than many other countries.

Read more:
Trudeau steps down with his popularity in shreds
Canadian PM criticises Trump over tariffs

During leadership debates, Mr Carney argued he was the only person prepared to handle Trump.

“I know how to manage crises,” he said.

“In a situation like this, you need experience in terms of crisis management, you need negotiating skills.”

The surge in Canadian nationalism has bolstered the Liberal Party’s chances in a parliamentary election.

Continue Reading

World

Donald Trump says Ukraine ‘may not survive’ war against Russia even if US support continues

Published

on

By

Donald Trump says Ukraine 'may not survive' war against Russia even if US support continues

US President Donald Trump has suggested Ukraine “may not survive” the war against Russia even if American support continued.

In an interview with Fox News channel’s ‘Sunday Morning Futures’, Mr Trump was asked about his controversial decision to pause support for Kyiv as it fends off Russia’s full-scale invasion.

Mr Trump, who had a disastrous meeting with Mr Zelenskyy at the White House last week, was asked about a warning from Polish President Andrzej Duda “that without American support, Ukraine will not survive”.

Asked if he was “comfortable” with that outcome, the US president said: “Well, it may not survive anyway.

“But we have some weaknesses with Russia. You know, it takes two,” Mr Trump added.

Pic: Reuters
Image:
Donald Trump. File Pic: Reuters

Follow the latest updates on Donald Trump

It comes as Mr Zelenskyy will visit Saudi Arabia for a Monday meeting with Crown Prince Mohammed bin Salman, while Ukrainian diplomatic and military representatives will meet with a US delegation on Tuesday.

More on Donald Trump

Mr Trump’s latest remarks come amid global concern over the souring relationship between Ukraine and the US, which alongside the EU has been Kyiv’s main backer in its defence against Russia’s three-year land, air and sea invasion.

The US paused military aid and the sharing of intelligence with Ukraine this month after a meeting between Mr Trump and Mr Zelenskyy on 28 February descended into acrimony in front of the world’s media.

👉 Follow Trump 100 on your podcast app 👈

Mr Trump ordered the pause as he attempts to put pressure on Mr Zelenskyy to negotiate a ceasefire deal with Russia.

Mr Trump has privately made it clear to aides that a signed minerals deal between Washington and Kyiv will not be enough to restart aid and intelligence sharing with Ukraine, Sky News’ US partner network NBC reported earlier on Sunday.

Please use Chrome browser for a more accessible video player

How are Americans feeling after nearly 50 days of Trump?

Read more:
Rating Donald Trump’s second term so far

‘Trump bump’ turns to a Trump slump

The 78-year-old president is said to want the deal signed, but also wants to see a change in Mr Zelenskyy’s attitude towards peace talks.

Officials have told NBC News that Mr Trump also wants Mr Zelenskyy to make some movement towards holding elections in Ukraine and possibly stepping down as his country’s leader.

Mr Zelenskyy said in a recent interview he would be ready to step down as Ukraine’s president if it meant his country would become a NATO member and find peace.

That came after he was branded a “dictator” by Mr Trump as Ukraine had not held fresh elections – despite laws prohibiting it during wartime.

Continue Reading

US

Donald Trump says Ukraine ‘may not survive’ war against Russia even if US support continues

Published

on

By

Donald Trump says Ukraine 'may not survive' war against Russia even if US support continues

US President Donald Trump has suggested Ukraine “may not survive” the war against Russia even if American support continued.

In an interview with Fox News channel’s ‘Sunday Morning Futures’, Mr Trump was asked about his controversial decision to pause support for Kyiv as it fends off Russia’s full-scale invasion.

Mr Trump, who had a disastrous meeting with Mr Zelenskyy at the White House last week, was asked about a warning from Polish President Andrzej Duda “that without American support, Ukraine will not survive”.

Asked if he was “comfortable” with that outcome, the US president said: “Well, it may not survive anyway.

“But we have some weaknesses with Russia. You know, it takes two,” Mr Trump added.

Pic: Reuters
Image:
Donald Trump. File Pic: Reuters

Follow the latest updates on Donald Trump

It comes as Mr Zelenskyy will visit Saudi Arabia for a Monday meeting with Crown Prince Mohammed bin Salman, while Ukrainian diplomatic and military representatives will meet with a US delegation on Tuesday.

More on Donald Trump

Mr Trump’s latest remarks come amid global concern over the souring relationship between Ukraine and the US, which alongside the EU has been Kyiv’s main backer in its defence against Russia’s three-year land, air and sea invasion.

The US paused military aid and the sharing of intelligence with Ukraine this month after a meeting between Mr Trump and Mr Zelenskyy on 28 February descended into acrimony in front of the world’s media.

👉 Follow Trump 100 on your podcast app 👈

Mr Trump ordered the pause as he attempts to put pressure on Mr Zelenskyy to negotiate a ceasefire deal with Russia.

Mr Trump has privately made it clear to aides that a signed minerals deal between Washington and Kyiv will not be enough to restart aid and intelligence sharing with Ukraine, Sky News’ US partner network NBC reported earlier on Sunday.

Please use Chrome browser for a more accessible video player

How are Americans feeling after nearly 50 days of Trump?

Read more:
Rating Donald Trump’s second term so far

‘Trump bump’ turns to a Trump slump

The 78-year-old president is said to want the deal signed, but also wants to see a change in Mr Zelenskyy’s attitude towards peace talks.

Officials have told NBC News that Mr Trump also wants Mr Zelenskyy to make some movement towards holding elections in Ukraine and possibly stepping down as his country’s leader.

Mr Zelenskyy said in a recent interview he would be ready to step down as Ukraine’s president if it meant his country would become a NATO member and find peace.

That came after he was branded a “dictator” by Mr Trump as Ukraine had not held fresh elections – despite laws prohibiting it during wartime.

Continue Reading

Trending