JPM’s Dimon says geopolitical risks ‘dangerous and getting worse’

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Jamie Dimon, CEO and Chairman of JPMorgan Chase, speaks during the US Senate Banking, Housing and Urban Affairs Committee’s oversight hearing on Wall Street Companies, on Capitol Hill in Washington, USA, on December 6, 2023.

Evelyn Hockstein | Reuters

JPMorgan Chase CEO Jamie Dimon believes risks are rising around the world, amid growing conflicts in the Middle East and Russia’s invasion of Ukraine that shows no signs of slowing.

“We have been closely monitoring the geopolitical situation for some time, and recent events show that conditions are dangerous and getting worse,” Dimon said Friday in the bank’s third-quarter earnings release.

“There is significant human suffering and the outcome of these situations could have far-reaching effects both on short-term economic outcomes and, more importantly, on the course of history,” he said. he declared.

The international order in place since the end of the Second World War is collapsing with conflicts in the Middle East and Ukraine, rising tensions between the United States and China and the risk of “nuclear blackmail” from the from Iran, North Korea and Russia, Dimon said last month at a news conference. fireside chat hosted at Georgetown University.

“It’s getting worse, my friends, and it takes very strong American leadership and leaders in the Western world to do something about it,” Dimon said. “It’s my number one concern, and it dwarfs any I’ve had since I’ve been working.”

The ongoing conflict between Israel and Hamas recently reached the one-year anniversary of the Hamas attack on October 7, and there are few signs of slowing down. Tens of thousands of people were killed as the conflict has expanded into fighting on multiple fronts, including with Hezbollah and Iran.

At least 22 people were killed and more than 100 injured in Beirut, Lebanon, in Israeli airstrikes on Thursday. Iran launched more than 180 missiles against Israel on October 1, and concerns have grown that Israeli retaliation could target Iranian oil facilities.

Dimon also said Friday that he remains cautious about the future of the economy, despite signs that the Federal Reserve has staged a soft landing.

“While inflation slows and the U.S. economy remains resilient, several critical issues remain, including large budget deficits, infrastructure needs, trade restructuring and the remilitarization of the world,” Mr. Dimon said. “While we hope for the best, these events and the prevailing uncertainty demonstrate why we must be prepared for any environment.”

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