A year after JP Morgan’s Jamie Dimon called geopolitics the world’s biggest risk, he sounded the alarm again, warning that the state of global stability has worsened.
During his visit to India, Dimon told CNBC in an exclusive interview: “My attention is focused on the entire geopolitical situation, which could determine the state of the economy.”
“Geopolitics is getting worse, not better. There is a possibility of energy accidents. God knows what will happen if other countries get involved. We have many fronts of war at the moment,” he said, before referring to attacks carried out by Yemen’s Houthi rebel group that have taken place in the Red Sea.
Geopolitical instability “is at the forefront of my attention,” Dimon said. He also urged the U.S. to prepare for a prolonged war between Ukraine and Russia.
The interview came nearly a year after Dimon called geopolitics, following Russia’s invasion of Ukraine, the biggest risk he sees facing the world, bigger than high inflation or a U.S. recession.
At the same time, and on the occasion of the Fed’s interest rate cut, Dimon expressed skepticism about the US economy and market expectations.
“I’m a long-term optimist, but in the short term I’m also more skeptical than some people who say everything is going to be fine. The markets are pricing things in as if they’re great. Count me among those who are cautious about that possibility,” he said.