Jamie Dimon, Chairman and Chief Executive Officer (CEO) of JPMorgan Chase & amp; Co. (JPM) speaking to the New York Economic Club in Manhattan in New York City, USA, April 23, 2024.
Fresh Mike | Reuters
A year after Jamie Dimon called geopolitics the world’s biggest risk, JPMorgan ChaseCEO’s sounded the alarm again, warning that the state of global stability is not bad.
During his visit to India, Dimon said in an exclusive interview with CNBC-TV18 released on Tuesday, “Beware of all geopolitics, which can determine the economic situation.”
“Geopolitics are getting worse, they are not getting better. There is a chance for an accident in the energy supply. God knows that other countries are involved. The Houthi rebel group is happening in the Red Sea.
According to the US military, the Houthis have attacked at least two crude oil tankers this month.
Geopolitical instability “is the biggest caution,” Dimon said. He also urged the US to prepare for a long war between Ukraine and Russia.
The interview comes nearly a year after Dimon called geopolitics, following Russia’s invasion of Ukraine, the biggest risk the world has seen, bigger than high inflation or a US recession.
After a long period of sticky inflation, the Federal Reserve last Wednesday made a jumbo rate cut, the first reduction since March 2020. Traders have piled in, driving the S&P 500 to a new closing high on Monday.
But Dimon expressed skepticism about the U.S. economy and the value of the market.
“I’m a long-term optimist, but in the short term, I’m also more skeptical of others who say everything will be fine. The market is pricing it like it’s going to be fine. I’m on the cautious side,” he said.
