Jamie Dimon, CEO of JPMorgan Chase, Predicts Geopolitical Tensions May Lead To The Most Dangerous Era In Decades
Jamie Dimon, CEO of JPMorgan Chase, warns that the conflict between Ukraine and Russia along with Isreali strikes, could potentially cause far-reaching impacts on the energy and food markets, global trade, and geopolitical relations. This could possibly mark the most dangerous times in decades.
Background The military confrontation between Israel and the Palestinian radical group Hamas has once again triggered global sensitivity towards international geopolitics. In the recent Q3 financial report, Dimon issued a stern warning, stating that the world may be experiencing the “most dangerous times in decades”.
A Note of Caution from ‘Dr. Doom’
Also known as ‘Dr. Doom’, renowned economist Nouriel Roubini, notable for predicting the 2008 financial crisis, warned in an interview with Bloomberg last week that financial markets seem to underestimate the chance of a large-scale conflict happening in the Middle East.
Restricted Liquidity Due to Quantitative Tightening
Due to regulatory restrictions on market-making abilities, quantitative tightening can reduce liquidity in the system. Dimon recently warned about the risk of ‘stagflation’ in the US and emphasized that stagflation is the worst economic outcome which could likely push many people into difficulties.
Earlier last month, Dimon warned that the Federal Reserve might raise interest rates to 7% to combat inflation, a steeper hike from 5% to 7% than from 3% to 5%, mentioning that “the world is not ready for 7% interest rate”.
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