Viewpoint Hong Kong News: On October 16, Daniel Pinto, President of JPMorgan Chase, said at the International Finance Association that under the high level of savings and abundant finance, the consumption and business performance of the United States are strong, but high inflation and high interest rates or further interest rate increases can create pressure, and there are a lot of things that can go wrong, including the warming of the Russia-Ukraine conflict, Hamas attacks on Israel, and the complexity of Sino US relations.
He pointed out that the US economy is resisting different challenges, but a series of political and economic risks can trigger a recession.
He also stated that attention should be paid to the business model of medium-sized banks to ensure their sustainability. He revealed that the First Republic Bank, which was acquired by the bank, improperly managed interest rate risk, and many assets were actually in good condition, only owning them at the wrong price.