JPMorgan Chase Chief Executive Officer Jamie Dimon sees increasing risks world wide given the worsening conflicts within the Middle East and the continued Russian invasion of Ukraine.
“We have been closely monitoring the geopolitical situation for some time and recent events show that conditions are treacherous and deteriorating,” Dimon said within the bank's third-quarter earnings release on Friday.
“There is significant human suffering and the outcome of these situations could have far-reaching effects on both short-term economic outcomes and, more importantly, the course of history,” he said.
The international order that has existed because the end of World War II is crumbling amid conflicts within the Middle East and Ukraine, rising tensions between the United States and China and the specter of “nuclear blackmail” from Iran, North Korea and Russia, Dimon said during a gathering last month Fireside chat at Georgetown University.
“It's getting worse, folks, and it's going to take really strong American and Western leaders to do something about it,” Dimon said at Georgetown. “That’s my biggest concern, and it surpasses any other I’ve had since I’ve been working.”
The ongoing conflict between Israel and Hamas recently reached the one-year mark since Hamas' attack on October 7, 2023, sparking war and showing little sign of slowing down. Tens of 1000’s of individuals were killed because the conflict has expanded into fighting on multiple fronts, including with Hezbollah and Iran.
At least 22 people were killed and greater than 100 injured in Beirut by Israeli airstrikes on Thursday. Iran fired greater than 180 missiles against Israel on October 1, and concerns are growing that an Israeli retaliatory strike could goal Iranian oil facilities.
Meanwhile, the Russian government last week approved a budget proposal that increases defense spending by 25% over 2024 levels, an indication that Russia is set to proceed its invasion of Ukraine, analysts say.
Dimon also said Friday that he stays concerned concerning the way forward for the economy, despite signs that the Federal Reserve has engineered a soft landing.
“While inflation is slowing and the U.S. economy remains resilient, several critical issues remain, including large budget deficits, infrastructure needs, trade restructuring and global remilitarization,” 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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