Morgan Stanley CEO, Damon: The world is going through the most dangerous period in decades.

Just as JPMorgan Chase's third-quarter revenue and net interest income exceeded expectations, the CEO of JPMorgan Chase poured cold water on the earnings report, stating that the current situation may be the "most dangerous moment in decades."

On October 13th, before the US stock market opened, JPMorgan Chase released its third-quarter earnings report. The report showed that JPMorgan Chase's Q3 adjusted revenue was $40.69 billion, higher than the market's expected $39.92 billion. The main source of JPMorgan Chase's income, net interest income (NII), was $22.9 billion, a YoY increase of 30% (excluding the acquisition of First Republic Bank this year, a YoY increase of 21%), reaching a new high.

However, JPMorgan Chase CEO Jamie Dimon commented in the earnings report that due to the uncertainty of the macro environment, the current situation may be the "most dangerous moment in decades." Although US consumers and businesses are "generally" healthy at the moment, consumers are depleting their cash savings.

At the same time, Dimon believes that the labor market remains hot, government debt levels are extremely high, and the fiscal deficit has reached the highest level in peacetime, all of which increase the risks of continued high inflation and further interest rate hikes:

In addition, we still do not know the long-term consequences of quantitative tightening policies, as quantitative tightening policies reduce liquidity in the system as market-making capabilities are increasingly restricted by regulations.

The conflicts between Russia and Ukraine and in the Middle East may have far-reaching effects on energy and food markets, global trade, and geopolitical relations. This may be the most dangerous moment in decades.

Recently, Dimon has been warning the market that not only could interest rates remain high, but they could also rise significantly on top of that.

In September of this year, Dimon stated in an interview that the worst-case scenario is that the Federal Reserve may raise the federal benchmark interest rate to 7%, and the world may not be ready to respond.

Earlier, Dimon stated at an event that the Federal Reserve may have to continue raising interest rates in the coming months to combat ongoing inflation. The Federal Reserve started raising rates "late and unprepared," and the rapid rate hikes over the past year and a half were just "catching up."