According to the CEO of the largest US bank, the widespread supply chain turmoil that plagues manufacturers and retailers around the world will probably be resolved in the coming months.
At this week’s Institute of International Finance meeting, JPMorgan Chase CEO Jamie Dimon said: “This is the worst part of it, and a great market system adjusts it.”
Nonetheless, Bank of America and Wells Fargo CEOs admitted in a statement at the IIF conference that they initially underestimated the extent to which labor and material shortages disrupted the world. Supply chain..
“Six months ago this was raised to me by clients across the country … Bank of America CEO Brian Moynihan said Tuesday.
Wells Fargo CEO Charlie Schaff expressed similar surprises about the degree of turmoil, but said he believed the problem was “temporary.”
Comments from Wall Street come from the Biden administration’s growing concern that supply chain bottlenecks could weigh on economic recovery.
The White House set up a supply chain disruption task force in June to begin addressing some of its backlog, from transportation to food processing to semiconductors, but that trend hasn’t reversed yet.
As a sign of growing concern about the turmoil, President Joe Biden will meet with senior officials and other stakeholders on Wednesday to discuss “a joint effort to address bottlenecks in the global transportation supply chain.” ..
Banks like JP Morgan and Wells Fargo are in constant contact with commercial clients through large-scale trade finance and cash management businesses, approaching the pulsation that creates an economic threat.
“I think we understand the complex interconnectivity of global supply chains … People will probably not do so more broadly,” Schaff said. “We have to protect those who make decisions that exacerbate the problem, which are about to be added to inventory too soon.”
Back log At factories, port and truck dispatches have disrupted the supply chain since the end of last year, when consumer demand recovered from a pandemic depth and dramatically exceeded supply. Along with these trends Shortage of workers, Contributes to a significant increase in transportation costs.
Retail company We responded by increasing inventories, leading to a rapid increase in inventories and off-season promotional sales.
Moynihan said it was too early to say whether the shortage would lead to higher prices and make the goods affordable. “That’s a serious concern for now.”
Additional Report by Joshua Franklin of New York
U.S. bankers are convinced that supply chain disruptions are “temporary”
Source link U.S. bankers are convinced that supply chain disruptions are “temporary”