JP Morgan CEO Calls Biden’s Natural Gas Halt “Utterly Inexperienced” and Issues an Economy Warning
Longtime JP Morgan Chase CEO Jamie Dimon sent out a letter on Monday as part of the company’s annual report, criticizing the Biden administration’s decision to freeze new LNG projects and issuing a stark warning about the state of the economy going forward.
In the statement, Dimon stressed the value of LNG as a reasonably priced energy source for the United States and its allies. He also said that the projects’ suspension increased reliance on coal and oil, which had negative geopolitical and economic effects. Along with his warning about the economy, he hinted that the current high expectations for inflation would last longer than expected and that the Federal Reserve might have to maintain high federal fund rates in order to control inflation in between periods of heavy government spending.
Dimon said, “Business is real politics, and recently canceling future liquefied natural gas (LNG) projects is a good example of this fact.” He went on, “Political factors, such as placating people who think gas is terrible and that initiatives involving oil and gas should just be stopped, were the main cause of the project delays. This is incredibly ignorant as well as inaccurate. Using gas instead of coal is the best option to cut CO2 emissions over the next few decades. Countries all over the world, including wealthy and environmentally conscious nations like France, Germany, and the Netherlands, as well as low-income nations like Indonesia, the Philippines, and Vietnam, unable to afford high costs, began turning back to their coal plants when oil and gas prices skyrocketed in previous winters.
Additionally, he made hints about significant international developments that, in his opinion, should concern Americans and threaten the US economy.
Dimon stated, It is important to note that the economy is receiving a boost from large-scale government deficits and previous stimuli. The need for more budget increases is also increasing as we fight with rising healthcare costs, restructure global supply networks, advance toward a green economy, and raise military spending. Inflation rates may rise as a result, and they might exceed what the market anticipates.
The national debt was close to $34.6 trillion as of April 4, according to the Treasury Department. The federal government spent more than twice as much as it took in in February, increasing the debt of the country by $296 billion.
Prices have increased by 18.5% since President Joe Biden took office in January 2021, with a recent year-over-year increase of 3.2%, above the Federal Reserve’s 2% objective. As a result, the federal funds rate was maintained at its highest level in 23 years, between 5.25% to 5.50%.
Starting with a bank run by Silicon Valley Bank, JP Morgan achieved record profits in 2023 despite the crisis that shook several medium-sized and small institutions. JP Morgan acquired the assets of First Republic Bank following its failure.
There are negative risks worth watching, stated Dimon. The annual rate at which systemic liquidity is depleting is above $900 billion, and we have never fully understood the consequences of systemic liquidity at this magnitude. They have caused an enormous human cost in the continuing conflicts in the Middle East and Ukraine, but they are also capable of upsetting food and energy markets, immigration, and military and commercial ties. These powerful and comparatively unique factors spur us to vigilance.
When the Daily Caller News Foundation contacted JP Morgan, the company declined to provide additional comments.
