JPMorgan President Jamie Demon stated that the current banking crisis is not over, and that even when it ends it will have repercussions that will last for years. In a letter to shareholders, released on Tuesday, April 4, Demon said that the banking crisis has caused a lot of tension in the market, and will tighten financial conditions, as banks and other lenders become more.
He stressed that it was unclear when the current uncertainty in the banking system would end. However, Demon stressed that recent shocks in the banking sector did not resemble the financial crisis of 2008.
The Fed may also be forced to increase interest above expectations despite the recent banking crisis, should inflation continue to rise longer, and the Fed raise interest by about 25 basis points at last month's meeting, amid the height of the SVB crunch.
