Jamie Dimon, JPMorgan CEO, urges that the geopolitics is getting worse after he called it the world’s “Biggest risk” since last year.
During his India visit, Dimon said in an interview with CNBC on Tuesday that geopolitics will determine the state of the economy while reiterating his cautiousness toward the ongoing situation.
The geopolitics is getting worse and shows no sign of improving. The energy supply chain is vulnerable, while there are wars currently being fought, with a possibility of foreign intervention.
He pointed to an attack from Yemen’s Houthi rebel group that took place in the Red Sea, stating that there were at least two reports this month from the U.S. military of an attack on crude oil tankers from the Houthi.
Dimon also suggests that the U.S. should prepare for a prolonged war between Ukraine and Russia that may worsen geopolitics stability.
The interview came almost a year after he called geopolitics the biggest risk the world is currently facing, because of Russia’s war on Ukraine, he also claimed that the risk was even bigger than huge inflation or U.S. recession.
After a lengthy period of sticky inflation, the Federal Reserve made a massive rate cut last Wednesday, the first time since March 2020. Traders have jumped on the opportunity, driving the S&P 500 to a fresh closing high on Monday.
Dimon however remains skeptical over the state of the U.S. economy and its market. He said that while he is a long-term optimist, in the meantime he is more skeptical of the saying that everything is doing great, while market pricing puts him on the more cautious side instead.
