CEO Jamie Dimon looks on during the inauguration the new French headquarters of JP Morgan bank, June 29, 2021, in Paris. (Michel Euler, Pool, File / AP Newsroom)
There are two main issues that Dimon said are worrying him: The Federal Reserve moving to unwind its $8.9 trillion balance sheet, deploying a less-known tool known as quantitative tightening that will further tighten credit for U.S. households as officials try to tame red-hot inflation.
The rundown of the Fed's portfolio is poised to begin on Wednesday at an initial combined monthly pace of $47.5 billion. The Fed will increase the runoff rate to $95 billion by September, putting the central bank on track to reduce its balance sheet by about $3 trillion over the next three years.
"We’ve never had QT like this, so you’re looking at something you could be writing history books on for 50 years," Dimon said.
