According to a new report, the risk of the Federal Reserve inadvertently causing a recession by combating inflation is increasing. JPMorgan ChaseThe CEO Jamie Dimon.

This is the CEO of the largest U.S. bank according to assets saidWednesday’s economic growth was sustained at minimum through the third and fourth quarters of 2012. It is fueled by cash-rich consumers and companies and timely repayments.

After that it is difficult to predict. There are two additional very important countervailing factors that you all know about,” Dimon explained to analysts. They were inflation and quantitative tightening. You’ve never seen it before. Just to be clear, those storm clouds are visible on the horizon. They may or may not disappear.

Dimon’s remarks demonstrate how fast major events can impact the economy. He stated that the United States was experiencing an “economic boom” a year ago.Goldilocks“The moment of great growth, coupled with low inflation, that may last until 2023. However stubbornly high inflationThis picture is clouded by a variety of potential impacts of Russia’s invasion in Ukraine.

JPMorgan exposed the dangers on Wednesday. postedThe Ukraine war caused a decline of 42% in profits compared with a year prior.

Specifically, the bank took a $902 million charge for building loan loss reserves, a stark reversal from a year ago, when it released $5.2 billion in reserves.

JPMorgan made the move — unusual because executives said borrowers of all income levels are still paying their bills — as odds increased of a “Fed-induced” recession, according to CFO Jeremy Barnum. The Fed raised rates until the U.S. economic shrinks in the past. The Fed raised rates to the point that last month’s economy shrank, but in the past. Fed hiked its benchmark rateThese increases may be made at the six remaining meetings in this year’s calendar.

Despite rising interest rates that tend to boost their lending margins, bank stocks were hammered in this year. Parts of the yield curve are flattening. even invertedThis year is highly monitored for signs of possible future recession.

JPMorgan executives clarified that they didn’t predict a recession. However, high inflation has been exacerbated due to Covid’s actions and the impact of the Ukraine war. To determine how much to reserve, managers have to look at a number of probabilities-weighted scenarios.

Dimon told a media conference that “these are very powerful forces” and predicted that they would collide sometime in the next year. No one can predict what the future holds so it’s impossible to foresee a recession. It is possible, but you don’t know. Absolutely.”

Dimon stated to reporters that in the event of a recession, the bank “would have to put up much more” loan loss reserves. JPMorgan shares lost 3.4% and touched a 52 Week low.

Oil markets have shown that wars are unpredictable and can lead to unpredicted outcomes. Dimon stated that the oil market is precarious. Dimon said, “I wish those things all vanish and disappear; we have a soft land and the war has been resolved. It’s just not something I would bet on.