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Wall Street bankers from Riyadh warn of a slowing global economy


© Stocksak. FILE PHOTO JP Morgan CEO Jamie Dimon gives a speech at the opening of the French headquarters of JP Morgan in Paris, France on June 29, 2021. Michel Euler/Pool via REUTERS/File Photo

RIYADH (Stocksak). Top Wall Street bankers reaffirmed their concerns about the global economy Tuesday amid rising geopolitical tensions, steep interest rate rises to combat decades-high inflation and high geopolitical tensions.

David Solomon, Goldman Sachs (NYSE 🙂 boss, stated that economic conditions will “tighten meaningfully” from here and that the U.S. Federal Reserve could raise rates beyond 4.5-4.75% if they do not see any significant changes in behavior.

“If they don’t see real changes – labour is still very, very tight – they’re obviously just playing with the demand side by tightening. He stated that if they don’t notice real changes in behavior, my guess would be they’ll go even further.”

He spoke at the flagship Saudi Arabian investment conference in Riyadh and said that it was difficult to escape “embedded” inflation without an economic slowdown.

Solomon said that the process of resolving 40 years worth of “nationalized fixed-income markets” is “disruptive”.

JPMorgan Chase & Co (NYSE:)’s Chief Executive Jamie Dimon, speaking on the same panel, said the geopolitical situation was more concerning than a possible recession in the United States.

Dimon stated that the conflict in Russia and Ukraine and tensions between the United States of China were more concerning than a potential U.S. economic recession.

“There’s a lot of stuff on the horizon which is bad and could – not necessarily – but could put the U.S. in recession,” he said. “But that’s just one thing to think about. We’ll get right through that. I worry more about geopolitics in the global world today.

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