• Ukraine war remains JPMorgan CEO Jamie Dimon’s top concern
• Conflict with far-reaching consequences – especially on Sino-American relations
• US economy soft landing still possible
JPMorgan boss Jamie Dimon is concerned about the ongoing war in Ukraine. It has now been more than a year since Russia invaded Ukraine, and there is still no end in sight to the aggression. In addition to the immeasurable human suffering associated with war, the conflict has also sent shockwaves through energy and food markets around the world that are still being felt.
In an interview with Bloomberg Television, Dimon called the Ukraine war “the hardest geopolitical thing we’ve had to deal with since World War II.” The head of the bank can imagine that the war could last for several more years.
Sino-American relations are under additional pressure due to the Ukraine war
In addition, the conflict would also affect international relations such as the already tense relationship between the US and China, which put Dimon on the alert: “The thing I worry about the most is Ukraine. It’s oil, gas, the world leaders and our relationship with China – all of this is far more serious than the economic vibrations we deal with on a daily basis”.
China is one of the few countries that continue to engage in lively exchanges with Russia. With the purchase of Russian energy, goods, raw materials, vehicles, etc., the People’s Republic is helping to ensure that Russia can continue to exist despite extensive international isolation.
In addition to this development, the USA is currently fighting with China for supremacy in the growing chip market. American support for Taiwan on the one hand and the mysterious spy balloons on the other, which are popping up all over the world and attributed to the People’s Republic, harbor further potential for conflict.
As Jamie Dimon revealed in an interview with Bloomberg Television, his bank would try to help improve relations between the two nations, but the financial expert does not believe that a turnaround can be achieved at the corporate level. Ultimately, it would be governments that would have to come together to improve the relationship. This should have been started “probably ten years ago”. However, here, too, the outcome of the Ukraine war would be one of the decisive factors for how the Sino-American relationship will continue.
Soft landing still possible
Dimon also gave some thoughts on the economic situation in the USA. The high inflation of the past year had persuaded the US Federal Reserve to change course and raise interest rates numerous times in order to curb inflation again. With the tighter one monetary policy However, there is also concern that the US economy could slide into a severe recession. However, Dimon told the news portal that a soft landing was still possible, but did not want to commit himself. However, consumers in the US would still present themselves quite strongly: “Consumers still have more money in their accounts than they did before COVID. They give ten percent [mehr] than last year, up 40 percent from pre-COVID and it looks like they have some cash left through the end of the year […]”, quotes MarketsInsider from the interview.
However, this is not a conclusive forecast, as Dimon points out: “A mild recession is possible, a harder recession is possible. I think the chances are good that inflation will fall, but not enough by the fourth quarter – it is possible that the Fed will have to make even more adjustments.”
But even if the US did eventually slide into a deeper recession, consumers would still be in good shape: “Consumers are in good shape. But I’m telling you, that will end one day. But even if we do slide into a recession, the consumer is going into this recession in a much better position than they were in 2008.”
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