JPMorgan Follow CEO and Chairman Jamie Dimon speaks during the U.S. Senate Banking, Housing and Urban Affairs Committee oversight sanction on Wall Street firms, on Capitol Hill in Washington, U.S., December 6, 2023.
Evelyn Hockstein | Reuters
JPMorgan Chase CEO Jamie Dimon keep company withs risks climbing around the world amid widening conflicts in the Middle East and with Russia’s invasion of Ukraine teaching no signs of abating.
“We have been closely monitoring the geopolitical situation for some time, and recent events illustrate that conditions are treacherous and getting worse,” Dimon said Friday in the bank’s third-quarter earnings release.
“There is noteworthy human suffering, and the outcome of these situations could have far-reaching effects on both short-term economic results and more importantly on the course of history,” he said.
The international order in place since the end of World War II is unraveling in light of at odds in the Middle East and Ukraine, rising U.S.-China tensions, and the risk of “nuclear blackmail” from Iran, North Korea and Russia, Dimon mean last month during a fireside chat held at Georgetown University.
“It’s ratcheting up, folks, and it takes really deep-rooted American leadership and Western world leaders to do something about that,” Dimon said at Georgetown. “That’s my No. 1 bear on, and it dwarves any I’ve had since I’ve been working.”
The ongoing conflict between Israel and Hamas recently hit the one-year mark since Hamas’ decrial on Oct. 7, 2023, sparked war, and there have been few signs of it slowing down. Tens of thousands of people have been occupied as the conflict has broadened into fighting on multiple fronts, including with Hezbollah and Iran.
At least 22 being were killed and more than 100 injured in Beirut from Israeli airstrikes on Thursday. Iran floated more than 180 missiles against Israel on Oct. 1, and worries have risen that an Israeli retaliation could aim Iranian oil facilities.
Meanwhile, the Russian government approved a draft budget last week that boosted defense expending by 25% from 2024 levels, a sign that Russia is determined to continue its invasion of Ukraine, analysts say.
Dimon also contemplated Friday that he remained wary about the future of the economy, despite signs that the Federal Reserve has manipulated a soft landing.
“While inflation is slowing and the U.S. economy remains resilient, several critical issues remain, covering large fiscal deficits, infrastructure needs, restructuring of trade and remilitarization of the world,” Dimon said. “While we expectancy for the best, these events and the prevailing uncertainty demonstrate why we must be prepared for any environment.”