The headlines that the global financial media paid attention to last night and this morning mainly include:

1. JPMorgan Chase CEO: The challenge is unprecedented, we must prepare for the economic “hurricane”

2. Federal Reserve Beige Book: Slowing economic growth in some areas of the Federal Reserve worried about recession

3. San Francisco Fed President: Rate hikes should continue until inflation slows

4. Croatia will become the 20th member state of the euro zone after the approval of the European Commission

5. Sandberg to step down as Meta COO

6. Bank of Canada raises rates by 50 basis points and warns of possible ‘stronger’ measures

JPMorgan Chase CEO: Prepare for an economic ‘hurricane’

JPMorgan Chase CEO Jamie Dimon warned markets to prepare for a “hurricane” as the economy faces a series of unprecedented challenges, including quantitative tightening of monetary policy and events in Russia and Ukraine.

“The hurricane is coming our way,” Dimon told a conference hosted by AllianceBernstein on Wednesday. “We don’t know if this is a minor hurricane or a Sandy-sized super hurricane. You better be prepared.”

Dimon said at JPMorgan’s investor day in May that dark clouds were hanging over the U.S. economy, but he has updated that forecast given the Fed’s attempts to contain inflation. “Now that the sun is out, everything is fine, and everyone thinks the Fed can handle it,” he said.

JPMorgan economists last month cut their second-half growth forecast to 2.4% from 3%, the first-half 2023 forecast to 1.5% from 2.1%, and the second-half 2023 forecast to 1% from 1.4%.

Fed’s Beige Book: Slowing economic growth in some Fed areas fears recession

All 12 Fed jurisdictions have reported sustained economic growth since the last Beige Book report, with most showing slight or moderate growth, and four showing moderate growth, the Fed’s Beige Book survey released Wednesday said. increase.

Four regions made it clear that economic growth has slowed since the last report, the report said. Eight regions reported that their contacts had lowered expectations for future growth, and three regions in particular expressed concerns about a recession. Contacts in most regions reported continued growth in manufacturing.

Regional contacts tend to cite labor market difficulties as the biggest challenge, followed by supply chain disruptions. Rising interest rates, headline inflation, the Russian-Ukrainian conflict and disruptions caused by the Covid-19 pandemic, especially in the Northeast, are key issues affecting household and business plans.

On the inflation front, the report noted that most regions reported strong or rapid price increases, especially for input prices. Two regions noted that this rapid expansion was a continuation of an overall trend, and three regions observed a slowdown in price increases for goods or services.

San Francisco Fed President: Rate hikes should continue until inflation slows

San Francisco Fed President Mary Daly said the central bank should tighten monetary policy until inflation starts to fall back toward its 2 percent target. It added that officials should continue to use economic data as their main reference for monetary policy, and that they can slow rate hikes once price growth slows.

Daly said in an interview on Wednesday: “I’d love to do whatever it takes to get the inflation trend down to where we need it to be. What the Fed needs to do, and my personal view of the economy is to unwind the easing and then be open to the data, Use data as an important reference yardstick.”

Daly said she supported the Fed raising rates by 50 basis points each at its June and July meetings, but did not want to forecast policy action afterward. She supports pushing the federal funds rate to a neutral level of around 2.5% by the end of the year. Daly has no vote on monetary policy this year.

Daly said it might be appropriate to adjust monetary policy to levels that would constrain the U.S. economy, but it was too early to make that decision.

Croatia to become the 20th member of the Eurozone after the European Commission’s approval

Croatia has been judged eligible to join the euro zone next year, which is about to welcome its 20th member.

The European Commission said on Wednesday that Croatia, the Adriatic nation of 3.9 million people, met the necessary requirements on issues including inflation and public debt and should be allowed to join the euro zone.

“Croatia is now ready to join the euro zone less than 10 years after joining the EU,” European Commission President von der Leyen said in a statement. “This will make Croatia’s economy stronger, benefiting its people, businesses and society as a whole.”

Other EU governments are expected to make a final decision on the matter in early July, the European Commission said. The European Parliament and the European Central Bank must also be consulted.

Sandberg to step down as Meta COO

Sheryl Sandberg (Sheryl Sandberg) announced Wednesday that she is stepping down as chief operating officer (COO) of Facebook parent company Meta.

Sandberg joined Facebook in early 2008 as the No. 2 to CEO and co-founder Mark Zuckerberg and helped make Facebook the advertising giant and the most powerful company in the tech industry One, the market value once exceeded 1 trillion US dollars.

Meta Chief Growth Officer Javier Olivan will take over as COO this fall. Sandberg informed Zuckerberg of her decision over the weekend, and she will remain on Meta’s board.

After the news was announced, Meta’s stock price plunged more than 4% in a short-term.

Bank of Canada raises rates by 50 basis points, warns of possible ‘stronger’ measures

The Bank of Canada took another big step in its rate hike cycle, raising its benchmark overnight rate by 50 basis points for the second time in a row. The bank warned that it could take “stronger” measures to curb inflation if necessary.

The Bank of Canada decided on Wednesday to raise its overnight interest rate to 1.5% and expressed concern about persistently high inflation in a hawkish statement.

While the 50 basis point hike was in line with expectations, the wording of the statement is expected to fuel speculation that policymakers such as Tiff Macklem are considering a faster pace of rate hikes. Currently, the market expects another 50 basis point rate hike at the July 13 meeting, followed by a slower pace of rate hikes in the second half of the year. The central bank is expected to stop near the 3% mark.

In a statement, the bank said it was “ready to take stronger action, if necessary, to achieve its 2 percent inflation target.”

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