JPMorgan Chase CEO and Chairman Jamie Dimon speaks during the U.S. Senate Banking, Housing and Urban Affairs Committee’s oversight hearing on Wall Street companies at the Capitol in Washington, U.S., December 6, 2023.
Evelyn HochsteinReuter
JP Morgan Chase CEO Jamie Dimon believes risks are rising around the world, with conflict escalating in the Middle East and Russia’s invasion of Ukraine showing no signs of slowing down.
“We have been closely monitoring the geopolitical situation for some time, and recent events indicate that the situation is dangerous and worsening,” Dimon said Friday during the bank’s third-quarter earnings call. .
“Significant human suffering has occurred, and the consequences of this situation could have far-reaching implications for short-term economic outcomes and, more importantly, the course of history,” he said.
The international order that has been in place since the end of World War II is on the brink of collapse, given the conflict in the Middle East and Ukraine, rising tensions between the United States and China, and the risk of “nuclear blackmail” from Iran, North Korea, and Russia. Dimon concluded by saying: Moon during a fireside chat at Georgetown University.
“Folks, things are getting progressively worse and we need really strong American leadership and Western leaders to do something about this,” Dimon said at Georgetown. “That’s my biggest concern, and it dwarfs any concerns I’ve had since I started working.”
The ongoing conflict between Israel and Hamas recently marked a one-year anniversary since the October 7, 2023 Hamas attack sparked the war, and shows little sign of slowing down. The conflict has escalated into fighting on multiple fronts, including Hezbollah and Iran, and has left tens of thousands of people dead.
Israeli airstrikes on Thursday killed at least 22 people and injured more than 100 in Beirut. Iran fired more than 180 missiles at Israel on October 1, raising concerns that Israeli retaliation could target Iranian oil facilities.
Meanwhile, the Russian government last week approved a budget that increases defense spending by 25% from 2024 levels, which analysts say is a sign of Russia’s determination to continue its invasion of Ukraine.
Mr. Dimon also said Friday that he remains cautious about the future of the economy, despite signs that the Fed is orchestrating a soft landing.
“While inflation has slowed and the U.S. economy remains resilient, several key issues remain, including large budget deficits, infrastructure demand, trade restructuring, and global remilitarization,” Dimon said. ” “We hope for the best, but these events and the prevailing uncertainty demonstrate why we must be prepared for any environment.”