The potentially unprecedented combination of risks facing the US warns in its annual message to JPMorgan shareholders the CEO and chairman of the largest US bank based on assets, Jamie Dimon.
In particular, Dimon cites three factors that are likely to shape the picture of the world in the coming decades: the recovery of the US economy from the coronavirus pandemic, high inflation that will mark an era of rising interest rates and the Russian invasion of Ukraine with the ensuing humanitarian crisis that is already under way.
“Each of the three factors mentioned above is unique: the drastic recovery fueled by fiscal measures for the coronavirus pandemic, the potential need for rapid rate hikes and the required reversal of monetary easing, but also the war in Ukraine and sanctions. in Russia “, Dimon states in his annual message to the shareholders of JPMorgan.
“Conditions are quite different from those we have experienced in the past – and their combination can dramatically increase the impending dangers,” he added. effects ”.
Dimon’s message this year, which has an impact on business circles, is partly more pessimistic than last year. Although he spoke at length about the challenges facing the United States, including economic inequality and political problems, in his message last year he expressed the belief that the United States was in the midst of an “explosion” that could “easily” be sustained until 2023.
But now, as he points out, the outbreak of the biggest war on European soil since World War II has changed things, disrupting markets, reshaping alliances and restructuring world trade standards. All of this, according to Dimon, poses both dangers and opportunities for the United States and other democracies.
“The war in Ukraine and the sanctions against Russia will at least slow down the world economy – and it could easily get worse,” Dimon wrote, citing uncertainty over the outcome of the war and its impact on supply chains. , especially those related to energy supply.
As for JPMorgan, Dimon stressed that the investment bank’s management is not worried about its direct exposure to Russia, although the bank could “lose even about $ 1 billion in the long run.”
Source: Capital
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