Washington — Jamie Dimon, the CEO of JPMorgan Chase, America’s largest financial institution, mentioned the continuing struggle in Ukraine ought to function a “turning point” that lulls U.S. leaders out of a “false sense of security.”
“Ukraine is a turning point where, you know, maybe all this sort of self-illusion that we had, that somehow the world’s at peace, and everything would be fine — that should have been shattered,” Dimon instructed “Face the Nation” moderator Margaret Brennan in an unique interview that aired Sunday. “And therefore we should be thinking about, how can America do great in the next 100 years? What policies should we have?”
Dimon mentioned he has seen a “false sense of security that you’ve had this war going on, you know, for nine months or whatever, and that somehow it’s OK.”
“If you go to Europe, they’re taking this much more seriously than Americans are,” he mentioned. “They’re on the front line. You had those missiles going to Poland. You have, basically, nuclear blackmail. I mean, it is as serious as you can get.”
Russia’s invasion of Ukraine in February drove up costs for commodities like oil and pure fuel virtually in a single day whereas producing a sweep of migration into Western Europe and exacerbating meals insecurity.
“This is the Western world under attack,” Dimon mentioned. “And wars, if you read the history of wars, they don’t start — they don’t end the way people think they would when they started.”
Dimon, who has served as CEO at JPMorgan Chase since 2005, mentioned the present geopolitical state of affairs is “turbulent,” and “it’s like anything can go wrong.”
He additionally pointed to particular challenges stemming from competitors with China and debt in rising markets. He mentioned the U.S. needs to be planning for easy methods to compete over the subsequent century and collaborating with allies. “Otherwise, you’re not going to end up with the world that we really want,” he mentioned.
On the inflation entrance, Dimon mentioned the Federal Reserve was in all probability behind the curve in elevating rates of interest to fight rising costs.
“I think the Fed, you know, anyone can look and say you were late. I hate second guessing people, because I make mistakes all the time,” Dimon mentioned. “But now they’ve kind of caught up.”
Earlier this week, Federal Reserve Chairman Jerome Powell steered there might be a slowdown within the tempo of rate of interest hikes. But Dimon mentioned he thinks there could also be room for extra motion.
“They may have to do a bit more after that, which will obviously probably catch people by surprise,” Dimon mentioned.
He mentioned he thinks the Fed will finally prevail in its efforts to comprise file excessive inflation and get it nearer to its most well-liked degree of two%.
“I think they’re going to win. I don’t think it’s going on for 10 years,” Dimon mentioned. “The only question is how long it takes to get it down to a number that people think you’ve kind of won.”
Still, the financial local weather and path ahead for inflation are unsure. At an occasion on the Brookings Institution final week, Powell reiterated that it is onerous to understand how lengthy inflation will stay excessive: “The truth is that the path ahead for inflation remains highly uncertain.”
Dimon, nonetheless, warned of a state of affairs the place rising markets — which took on appreciable debt to answer the pandemic — should pay extra in curiosity on their loans. That might squeeze already tight budgets and create political instability.