**JPMorgan Chase Warns of Global Economic Risks**
On Friday, October 11, JPMorgan Chase released its third-quarter financial report. On the same day, CEO Jamie Dimon issued a warning to investors about the current risks facing the global economy. He specifically pointed out several “key issues” facing the United States.
Dimon believes that due to the escalating conflicts in the Middle East and the ongoing war with no signs of weakening Russian invasion in Ukraine, global risks continue to rise.
In the press release of JPMorgan Chase’s third-quarter financial report, the CEO stated, “For some time, we have been closely monitoring geopolitical situations, recent events indicate that the situation is extremely dangerous and getting worse.”
“People are suffering greatly, and the outcomes of these situations may have profound effects on short-term economic results, and more importantly, on historical processes,” he said.
Dimon also stated on Friday that despite signs indicating the Federal Reserve has achieved an economic soft landing, he remains cautious about the future economy of the United States.
“While inflation is slowing down, the U.S. economy remains resilient, but there are still several key issues, including massive fiscal deficits, infrastructure needs, trade reconfiguration, and global remilitarization,” Dimon added. “Although we hope for the best outcomes, these events and the prevailing uncertainty explain why we must be prepared for any situation.”
He repeatedly warned that the United States needs to address its fiscal situation before it leads to a crisis due to national budget deficits.
Earlier this year, Dimon also sounded the alarm about the U.S. debt situation. He said that with debt growing at an alarming rate, the U.S. is heading towards a cliff, and mentioned that the “worst outcome” for the U.S. would be stagflation.
JPMorgan Chase, the largest bank in the United States with $3.5 trillion in assets according to the Federal Reserve data, has seen its stock price rise nearly 30% so far this year.
While the banking giant’s profit in the third quarter declined by 2% year-on-year to $12.9 billion, it exceeded expectations. At the same time, JPMorgan Chase’s revenue grew by 6% year-on-year to $43.4 billion, outperforming market expectations. JPMorgan Chase’s stock price rose by almost 5% on Friday.
For over a year, Dimon has been warning about geopolitical instability. He has repeatedly stated that this is the biggest threat facing the global economy. He also mentioned that the world order established at the end of World War II is under attack.
Last month, he expressed that these concerns overshadow all other worries.