Jamie Dimon, CEO of banking giant JP Morgan, warns that we might be in “the most dangerous time the world has seen in decades” as Israel prepares for a large-scale ground offensive against Gaza.
The escalating conflict risks having “far-reaching effects” on energy prices, food costs, international trade, and diplomatic ties worldwide.
The bank executive warns that US interest rates could rise further as consumer savings decrease – and that events in Ukraine and Gaza will impact the entire world.
– The war in Ukraine compounded by last week’s attacks on Israel may have far-reaching impacts on energy and food markets, global trade and geopolitical relationships. This may be the most dangerous time the world has seen in decades, he said.
– While we hope for the best, we prepare the firm for a broad range of outcomes so we can consistently deliver for clients no matter the environment, he continued during a press conference.
According to Dimon, the conflict in the Middle East will have “ripple effects that extend far beyond the region”. He believes a tough job market, high national debts, and the largest peacetime budget deficit ever increase the risk of sustained high inflation and further interest rate hikes.
However, for JP Morgan itself, things are going very well. Their net profit surged by a whole 35 percent to 13.15 billion dollars over the three months leading up to the end of September. Revenues also increased by 22 percent to 39.87 million dollars, partly after acquiring the collapsing First Republic Bank.