Part 2/13:
The Bank’s Contradictory Actions
What makes Dimon’s warning perplexing is the actions of JP Morgan itself. Despite his public insistence that inflation concerns will necessitate continued rate hikes, the bank’s balance sheet tells a different story. Historically, when Dimon emphasizes inflation risks, JP Morgan has reduced its holdings of US Treasuries, anticipating higher rates and inflationary pressures devaluing their bond portfolio. Yet, recent filings reveal that JP Morgan has been aggressively increasing its Treasury and agency debt holdings.