JP Morgan Chase would need to identify the risks it may face as an investment firm. As money supply decreases, JP Morgan Chase will see lower returns on its investment securities portfolios, less liquidity in the financial markets and higher funding costs, and significant changes in the value of financial instruments (JP Morgan Chase, 2019). With consumers and businesses spending less, the stock market will also see a decline in activity. Businesses, including JP Morgan Chase, will have less money available for spending on new projects and products that may have been driving big profits. Also due to clients having less discretionary spending money, JP Morgan Chase may see adverse effects in investing, causing it to earn less revenue on fees due to lower transaction volumes (JP Morgan Chase, 2018). Risk Measurements In order to understand the risks behind this change in monetary policy, it is important that JP Morgan Chase measure the impacts that these risks may have. With the increase in the federal funds rate, it is evident that the Fed triggers a ripple effect throughout the economy, leading to big banks such as JP Morgan Chase to feel the effects. The most notable effect would be through decreased profits due to less interest rate spread between borrowing and lending, decreased activity from loan originations and investment activity, potential for client defaults triggering bad debt, and less overall stock market activity. All of these effects would lead JP Morgan Chase to the potential of decreased business profit and valuation. To fully understand this, it is necessary