“We’ve already dealt with recessions”: Dimon named the main threat to the economy
JPMorgan Chase CEO Jamie Dimon says that geopolitics, against the backdrop of the conflict in Ukraine, represent the greatest risk, greater than high inflation or recession in the U.S. This was reported by CNBC.
Speaking on Tuesday on CNBC TV-18 in India, Dimon said that people should “be prepared for higher oil and gas prices, as well as higher rates”. He added that the US economy will most likely survive any turbulence.
“I think the geopolitical situation is what concerns me the most, and we don’t know how it will affect the economy,” he stated.
Further negative pressure on the markets in recent months was due to the slowdown in the Chinese economy, largely caused by the weakness of the huge real estate market.
Responding to a question about the potential impact of this downturn on China’s long-term prospects and the global economy, Dimon again speculated that the actual epicenter of risk is Eastern Europe, and the conflict in Ukraine exacerbates relations between economic superpowers.
“For me, the situation in Ukraine, oil, gas, food migration is much more important—this affects all global relations, especially relations between America and China,” said Dimon.
China and India have tried to maintain a neutral position and act as potential peacemakers, using closer ties with Russia, demonstrated by the BRICS alliance. Beijing has presented a peace plan to resolve the conflict in Ukraine, which has not yet received support.
This has put the two most populous countries in the world in a certain contradiction with the USA and Europe, who supplied Ukraine with weapons and financial support.
“I’m an American patriot, so foreign policy will be determined by governments, not JPMorgan, but I think Americans need to stop thinking of China as a 10-foot giant. Our GDP per capita is $80,000, we have everything we need for food, water, and energy, we have incredible advantages of free enterprise and freedom.”
Asked whether geopolitics is the number one risk facing the world today, Dimon responded “absolutely”.
“We’ve already dealt with inflation, we’ve dealt with deficits, we’ve dealt with recessions, but we haven’t seen anything like this in geopolitics since World War II,” he added.