US Faces Worst Risk Since World War II

JAKARTA – JPMorgan Chase Chief Executive Jamie Dimon said the United States (US) was facing major risks due to increasing global geopolitical tensions and domestic political polarization in the country.

In his annual letter to shareholders on Monday (8/4), the CEO of the largest US bank said that large amounts of government spending and the Federal Reserve’s efforts to shrink its balance sheet, as well as the Ukraine conflict and the Israel-Hamas war, had created a very dangerous environment. may create risks that could surpass anything seen since World War II.

“America’s global leadership role is being challenged from without by other countries and from within by our polarized electorate,” wrote Dimon, as reported by Russia Today, Tuesday (9/4/2024).

“We need to find a way to put aside our differences and work together with other Western countries in the name of democracy. In this time of great crisis, uniting to protect our essential freedoms, including freedom of enterprise, is paramount,” he continued.

The 68-year-old banker added that there was an increasing need to increase spending, as the transition to a greener economy, restructuring of global supply chains, increased military spending and efforts to combat rising health care costs.

Dimon said he was not as optimistic as the broader market that the U.S. economy would achieve a “soft landing,” namely moderate growth and a declining inflation rate. According to him, the chance of a soft landing is much smaller than the 70% to 80% expected by some investors.

Meanwhile, continued Dimon, China has established itself as a candidate for a new superpower and is strategically focusing on its economic security, at a time when central Western countries are fast asleep.

“Over the past 20 years, China has implemented a more comprehensive economic strategy than we have,” he said.

(fjo)