JPMorgan Chase CEO Jamie Dimon warns that the risks of bad economic outcomes are rising for the US as uncertainty mounts.
In a new interview with NPR, Dimon says there’s a big cloud of doubt that threatens to stifle US economic growth.
The JPMorgan Chase CEO specifically says that the uncertainty is not just because of hostilities in Ukraine and Iran.
“Economically, there’s tons of uncertainty, and I list like tons of them out there, not just these wars… They usually end up in some form of recession. Recession is unemployment. It could be stagflation and recession, which is the worst.
It could [lead to] nowhere. It pushes inflation that could be short-term. I don’t know. It may not happen at all, so I’m not even saying it’s going to happen. I just think it increases the odds of bad economic outcomes. And we should just be clear-eyed about that.”
Looking ahead, Dimon reveals his best and worst-case scenarios with a focus on tensions in the Middle East.
“I think the worst case is that somehow we don’t get control of the Strait of Hormuz, that we have to back out, that oil and gas, that Iran doesn’t give up, and oil and gas prices go even higher today. That’s probably the worst-case scenario.
And the best case is that they negotiate something where they don’t build nuclear weapons, the Strait of Hormuz is opened up, and we go back to a more peaceful world.”
In his Annual Letter to shareholders, Dimon zeroed in on geopolitics as one of the major issues that he’s closely watching.
Photo by charlesdeluvio on Unsplash
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