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Dimon Issues Economic Warning

JPMorgan Chase CEO Jamie Dimon, revealed that geopolitical events might be creating an economic environment that ‘may very well be creating risks that could eclipse anything since World War II.’

The nation’s most influential banker pointed to Russia’s invasion of Ukraine and the Israel-Hamas war, as well as US political polarization, as reasons for concern for economic stability.

‘The fallout from these events should also lay to rest the idea that America can stand alone,’ Dimon wrote. ‘Of course, US leaders must always put America first, but global peace and order are vital to American interests.’

The comments came in an annual shareholder letter from Dimon, who often uses the letter to weigh in broad topics like politics, regulation and global events and what it might mean to JPMorgan Chase, as well as the broader economy.

His concerns however came against the backdrop of a more positive outlook, as he also told investors that he continues to expect the US economy to be resilient and grow this year.

‘America’s global leadership role is being challenged outside by other nations and inside by our polarized electorate,’ Dimon added in the letter.

‘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.’

Dimon also expressed particular worry over continued large amounts of deficit spending by the US government and other countries.

He pointed to the need for countries such as the US to remilitarize and continue to build out green infrastructure, all of which will likely keep inflation higher than investors expect.

Because of these issues, Dimon said he is less optimistic that the US economy will achieve a ‘soft landing,’ which he defined as modest growth along with declining inflation and interest rates, compared to the broader market.

While he says the investors are pricing in a ‘70% to 80%’ chance of a soft landing, Dimon thinks the chances of such an ideal outcome are ‘a lot less’ than that.

‘These significant and somewhat unprecedented forces cause us to remain cautious,’ he said.

He added that ‘there is also 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.

‘This may lead to stickier inflation and higher rates than markets expect,’ he predicted.

His comments come as financial markets have dampened down expectations for how many rate cuts the US Federal Reserve will make this year.

As well as the economic outlook, Dimon’s letter also discussed the promise his company sees in the use of artificial intelligence.

The bank has found 400 use cases for AI so far, Dimon said, particularly in the bank´s marketing, fraud and risk departments.

The bank also is exploring using AI in software development and general employee productivity plans.

‘We are completely convinced the consequences (of AI) will be extraordinary and possibly as transformational as some of the major technological inventions of the past several hundred years: Think the printing press, the steam engine, electricity, computing and the Internet, among others.’

He discussed the ways in which this could impact jobs, including at JPMorgan, writing that ‘over time, we anticipate that our use of AI has the potential to augment virtually every job, as well as impact our workforce composition.

‘It may reduce certain job categories or roles, but it may create others as well.’

Dimon said that the bank already has some 2,000 workers and data scientists involved in AI, but added that it could ultimately be part of the jobs of all of the bank’s roughly 310,000 employees.

AI was first mentioned in a 2017 shareholder letter. Since then, the technology has come to the fore thanks to ChatGPT and other applications.

READ 6 COMMENTS
  • Scott says:

    The Bidenites don’t want a soft landing they want world war, famine and pain for all because then may be will forget how poor they are as leaders.

    • Patrick J Borush says:

      its designed to be a war and for america/europe to lose it and in turn any/all rights and thier constitutions especially americas. The WEF openly talks about this and yet the various nations DO NOTHING to ban them or stop them as THEY ARE BOUGHT AND PAID FOR BY THESE SAME PEOPLE!

  • RA says:

    Hmmmm. Another great depression coming perhaps worse than the original? So tired of the government telling us everything is going good when it’s not. My health isn’t that great right now and trying to get disability. Thanks alot Crooked Joe, you effin suck

  • John sweet says:

    Well perhaps the over “$30 Trillion” dollar of federal debt will open peoples eyes and ears! The first depression was only around $40.44 Billions ($673 Billions in to days dollars!) Time to pay attention to the Biden’s “Friendly Enemies List”where these “Trillions” of dollars are going to pay out foreign interests, as they buy up properties around and near military installations and plot against American interests both here and overseas! And the Biden’s Administrations duplicitous flooding of the nations states with over13 Million illegal immigrants, and monthly fights that add an additional 30,000 so far! Perhaps such facts will derail Biden’s efforts but only if people voice their opposition to how the illegals are being coddled and rewarded over our homeless veterans, and handicapped Citizens, stop spending our tax dollars on Buying the immigrants’ Votes!

    If you read this much please tell others!

  • Patrick J Borush says:

    our so called “leaders” (america does NOT have leaders it has elected representative SERVANTS) routinely put america last if its a thought at all other thana source of man power and cash AKA peasants on a tax farm! (we are armed to the fucking teeth so image how bad they would treat us if they ever do get the guns)

  • Brandon flay says:

    So true!!!

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