Jamie Dimon, the long serving chief executive of JPMorgan
Chase has warned that the US is facing grave risks in the wake of rising
global geopolitical tensions and the nation’s domestic political
polarization.
The banker warned that increased government spending could result in
stickier-than-expected inflation and higher interest rates in the US.
RT
reports: In an annual shareholder letter on Monday the CEO of the
largest US bank cited large amounts of government spending and efforts
by the Federal Reserve to shrink its balance sheet, as well as the
Ukraine conflict and the Israel-Hamas war, as creating an environment
that “may very well be creating risks that could eclipse anything since World War II.”
“America’s global leadership role is being challenged outside by other nations and inside by our polarized electorate,” Dimon wrote.
“We need to find ways to put aside our differences and work in
partnership with other Western nations in the name of democracy. During
this time of great crises, uniting to protect our essential freedoms,
including free enterprise, is paramount,” the chief executive urged.
The 68-year-old banker added that there is “a growing need for
increased spending as we continue transitioning to a greener economy,
restructuring global supply chains, boosting military expenditure and
battling rising healthcare costs.”
Dimon
said he was not as optimistic as the broader market that the US
economy will achieve a ‘soft landing,’ in which it sees modest growth
and declining inflation rates. Chances of a soft landing are “a lot less” than the 70% to 80% expected by some investors, he said.
Meanwhile, Dimon said, China has been establishing itself as a “potential superpower” and strategically focusing on its economic security, while the West “slept.”
“Over the last 20 years, China has been executing a more comprehensive economic strategy than we have,” he said.
He also weighed in on the future of AI, saying he is “completely convinced” that the consequences of the technology will be “extraordinary” and transformational.
Shorts relax:
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Author: Planet Today
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