Comments reported late on Friday from JP Morgan Chase CEO Jamie Dimon. Dimon was speaking to analysts during a conference call.
- “People need to be prepared for the potential of higher rates for longer”
- “If and when that happens, it will undress problems in the economy for those who are too exposed to floating rates, for those who are too exposed to refi risk”
(Refi risk is, in a nutshell, refinancing existing loans at, now higher, market rates.)
- “Those exposures will be in multiple parts of the economy.”
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Dimon also warned on the banking crisis that there is still a risk of “additional bank failures”.
