Jamie Dimon says ‘brace yourself’ for an economic hurricane caused by the Fed and Ukraine war

Jamie Dimon, CEO of JP Morgan Chase, appears on CNBC’s Squawk Box at the 2020 World Economic Forum in Davos, Switzerland on Jan. 22nd, 2020.

Jamie Dimon, the CEO of JP Morgan Chase, advised investors to prepare for an economic storm and said he was preparing the biggest U.S. bank for it.

At a financial conference in New York, Dimon said that he was going to change it from a storm to a hurricane. At the moment, nobody knows if the storm is a minor one or Superstorm Sandy.

JP Morgan is bracing itself and will be very conservative with its balance sheet.

First, the Federal Reserve has signaled it will reverse its emergency bond buying programs, and second, it will shrink its balance sheet. The so-called quantitative tightening, or QT, is scheduled to begin this month and will ramp up to 95 billion a month in reduced bond holdings.

You could be writing history books for 50 years if you look at something like this.

Central banks don't have a choice because they have too much money in the system.

There is a developing story. You can check back for updates.