A handful of developments could change the course of the US markets making the economy remain on a slippery slope. JP Morgan’s CEO Jamie Dimon explained three important factors that might bring the US economy down this year in 2024. The US economy entered 2024 on the back foot as the stock and commodity markets dwindled due to global factors. Dimon highlighted the ongoing developments that can wreak havoc on the US economy and equity markets in the coming months.
JP Morgan CEO: These 3 Things Can Impact the US Economy in 2024
Speaking at the World Economic Forum in Davos, JP Morgan’s CEO explained three factors that can affect the US economy. He stressed that investors need to closely watch these developments as the markets have a higher chance of heading south. The three factors that can impact the US economy this year in 2024 and 2025 are:
- Ukraine & Russia’s War
- Terror Attacks in Israel and Palestine
- Red Sea trade disruption
According to JP Morgan’s CEO, these three outward factors have the ability to pull the US economy down in 2024. “Ukraine, the terrorist activity in Israel, and the Red Sea, quantitative tightening, which I still question if we understand exactly how that works,” said Dimon during an interview with CNBC at the Davos economic forum in Switzerland.
He also said that the US stock market reaching new highs should not be celebrated as the aftermath could be too difficult to handle. “I think it’s a mistake to assume that everything’s hunky-dory,” Dimon said. “When stock markets are up, it’s kind of like this little drug we all feel like it’s just great. But remember, we’ve had so much fiscal monetary stimulation, so I’m a little more on the cautious side,” he summed it up.