Dimon’s economic ‘hurricane’

The European Union is trying to complete a sixth sanctions package targeting Russia for its invasion of Ukraine, but the debate is ongoing as Hungary wants yet another change—this one involving lifting sanctions against a Russian religious figure close to Vladimir Putin. The measures, announced earlier this week, include a partial Russian oil ban and removing Russia’s biggest bank from the SWIFT international payments system. Meanwhile, Biden administration officials are divided over how much further the US can push sanctions without sparking global economic instability and fracturing trans-Atlantic unity. The EU is also working to coordinate a ban on providing the insurance services needed to ship Russian oil anywhere in the world, a move that could badly hurt Moscow’s ability to finance its war. In Ukraine, Russian troops have seized more than two-thirds of the city of Sievierodonetsk in Ukraine’s eastern Luhansk region. And new US-provided missile systems for Kyiv have triggered warnings from the Kremlin. —Natasha Solo-Lyons

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Jamie Dimon warned investors to prepare for an economic “hurricane.” The US economy—despite record low unemployment—faces an unprecedented combination of challenges, including tightening monetary policy and Russia’s invasion of Ukraine, the JPMorgan CEO said. “We don’t know if it’s a minor one or Superstorm Sandy. You better brace yourself.”

US equities started the month lower after a strong set of data suggested the Federal Reserve may need to move faster to slow inflation. The S&P 500 fell 0.8% as data showed an unexpected advance in US manufacturing activity as well as exceptionally high job openings. Financial firms in the index slid 1.7% after Dimon said private borrowers may be stranded as conditions tighten. Here’s your markets wrap.

But in recent weeks, economic growth has slowed in some parts of the US, the Fed said. “Four districts explicitly noted that the pace of growth had slowed since the prior period,” the central bank said Wednesday. The Fed is also about to start shrinking its $8.9 trillion balance sheet, deploying a second tool along side higher interest rates to curb inflation.

More than one third of Americans earning at least $250,000 annually say they are living paycheck to paycheck, underscoring how inflation is taking a bigger bite out of budgets up the pay spectrum—and perhaps how saving money for a rainy day has gone out of style.

Elon Musk has had it with this whole working-from-home business. The Tesla CEO sent an email Tuesday to “Everybody” at his electric-car company, elaborating on an earlier missive to executive staff about the need to be in the office. “Everyone at Tesla is required to spend a minimum of 40 hours in the office per week,” Musk wrote.

China’s top diplomat reaffirmed Beijing’s close relationship with Moscow despite criticism from the US and other nations as Russia kills thousands, if not tens of thousands, of Ukrainian civilians.

Boris Johnson said it wouldn’t be “responsible” to resign over the various “partygate” scandals he’s been implicated in, even as a growing number of Tories call for him to go.

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