Geopolitical tensions and political polarization at home threaten “America’s global leadership role,” Jamie Dimon has warned
The US is facing grave risks in the wake of rising global geopolitical tensions and the nation’s domestic political polarization, Jamie Dimon, JPMorgan Chase chief executive, has warned.
In an annual shareholder letter on Monday the CEO of the largest US bank cited large amounts of government spending and efforts by the Federal Reserve to shrink its balance sheet, as well as the Ukraine conflict and the Israel-Hamas war, as creating an environment that “may very well be creating risks that could eclipse anything since World War II.”
“America’s global leadership role is being challenged outside by other nations and inside by our polarized electorate,” Dimon wrote.
“We need to find ways to put aside our differences and work in partnership with other Western nations in the name of democracy. During this time of great crises, uniting to protect our essential freedoms, including free enterprise, is paramount,” the chief executive urged.
The 68-year-old banker added that there is “a growing need for increased spending as we continue transitioning to a greener economy, restructuring global supply chains, boosting military expenditure and battling rising healthcare costs.”
Dimon said he was not as optimistic as the broader market that the US economy will achieve a ‘soft landing,’ in which it sees modest growth and declining inflation rates. Chances of a soft landing are “a lot less” than the 70% to 80% expected by some investors, he said.
“These significant and somewhat unprecedented forces cause us to remain cautious,” the JPMorgan boss concluded.
Meanwhile, Dimon said, China has been establishing itself as a “potential superpower” and strategically focusing on its economic security, while the West “slept.”
“Over the last 20 years, China has been executing a more comprehensive economic strategy than we have,” he said.
He also weighed in on the future of AI, saying he is “completely convinced” that the consequences of the technology will be “extraordinary” and transformational. JPMorgan is already exploring the use of AI in software development and employee production plans, particularly in the fraud and risk departments, he said.
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