JPMorgan’s Erdoes Says Price Stability Is Now ‘Out the Window’

(Bloomberg) -- Mary Erdoes, who runs JPMorgan Chase & Co.’s asset- and wealth-management unit, said factors that go into price stability are currently “out the window” as the biggest U.S. bank works with clients to navigate fallout from Russia’s invasion of Ukraine. 

“In general, geopolitical issues -- and we’ve had them for centuries -- don’t have a long-term impact on markets unless you get into severe commodities disruptions like oil crises, and that’s one of the things we have at play here,” Erdoes said Wednesday on a webcast with Walker & Dunlop Chief Executive Officer Willy Walker. “That can have impacts that are harder to quantify and longer-lasting than most geopolitical issues.” 

Erdoes also discussed the uncertainty surrounding the Federal Reserve’s rate hikes, saying monetary policy will partly depend on how the war develops. 

“Nobody knows” how high rates will go, Erdoes said, citing forecasts Wednesday morning that ranged from four to 10 interest-rate increases. “I do know they will be higher because what we’ve done irrespective of the war is pumped in a tremendous amount of money into the economy.”

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