“Right now, the weather is pretty good, things are going well. Everyone thinks the Fed can handle this,” Dimon told a Bernstein conference. “That hurricane is right over there on the road coming our way.”

“We just don’t know if it’s Minor or Superstorm Sandy. You better be prepared,” Dimon said, adding that JPMorgan Chase (JPM) prepares for a “non-benign environment” and “poor results”.

Dimon said the economy is “distorted” by inflation. He also worries that the Fed will begin to unwind its bond portfolio, a process known as quantitative tightening, while raising interest rates. It’s something the market isn’t prepared for, Dimon said, adding that people “will write about [this] in the history books for 50 years”,

But the Fed is at an impasse. Dimon said the central bank needed to raise rates due to soaring house prices and other inflationary pressures. He stressed that he still thinks the US banking system is in “great shape” and can withstand these challenges.

Dimon also said JPMorgan Chase will do everything possible to attract talent to stay on top of the financial world. The CEO said the bank would be “religious” to pay well to keep its best employees.

Speaking at an analyst meeting in late May, Dimon said there were “big storm clouds” on the horizon for the economy, but expressed hope that they could “dissipate”.

“If it was a hurricane, I would tell you,” Dimon told the analysts’ meeting, adding that current conditions also don’t resemble the “tsunami” that banks faced in 2007 and 2008 when the mortgage market collapsed and several major financial institutions collapsed.

Dimon may not be predicting a tsunami just yet. But a hurricane is bad enough, and certainly more damaging than an ordinary storm. Dimon said he was also worried about the conflict in Ukraine and its impact on oil prices, predicting on Wednesday that it was in the cards that crude prices would eventually climb to $150-$175 a barrel. .

“Wars go wrong. They go south. They have unintended consequences,” he said, adding that this conflict will continue to rock commodity markets around the world, impacting oil, gas and gas prices. and wheat.