By KEN SWEET AP Business Writer
3 hours ago
FILE – JPMorgan Chase & Co. Chairman and CEO Jamie Dimon speaks during a Senate Banking, Housing and Urban Affairs Committee Oversight Hearing investigating Wall Street companies at the Capitol in Washington, Dec. 6, 2023. JPMorgan Chase & Co. CEO Dimon, the most powerful banker in the U.S., told investors Monday, April 8, 2024, that he remains hopeful the U.S. economy will remain resilient and grow this year. He said he was doing it. But he said geopolitical events such as the Ukraine war and the Israel-Hamas war, as well as U.S. political polarization, “create a risk that could overshadow everything since World War II.” (AP photo) /Alex Brandon, File)
NEW YORK (AP) — America’s most powerful banker, CEO of JPMorgan Chase & Co. jamie dimonHe told investors on Monday that he continues to expect the U.S. economy to be resilient and grow this year. But he is concerned about geopolitical events such as: war in ukraine And that israel-hamas waras well as political polarization in the United States, may be creating an environment that is “very likely creating risks that could overshadow anything since World War II.” .
The comments were made in Mr. Dimon’s annual shareholder letter, in which he frequently discusses a wide range of topics, including politics, regulation, and world events, and what they mean. It uses letters. JP Morgan Chaseand the broader economy.
Dimon also used his letter The move is a powerful defense of the company’s commitment to diversity and equality, pushing back against Republican claims that such efforts by Fortune 500 companies and universities are discriminatory and promoting left-wing ideology.
“America’s global leadership role is being challenged on the outside by other countries and at home by a polarized electorate,” Dimon said. “In the name of democracy, we must put aside our differences and find ways to work together with other Western countries. It is of utmost importance that we come together to protect the essential freedoms of our people.”
Mr. Dimon is particularly concerned about continued large deficit spending by the U.S. government and other countries, as well as the need for countries like the U.S. to continue to rearm and build green infrastructure, all of which will push inflation toward investors. He said it was likely to be maintained at a higher level. expect.
Because of these issues, Dimon said he is less optimistic than the broader market about whether the U.S. economy will achieve a “soft landing,” meaning moderate growth with lower inflation and interest rates. Investors are pricing in a “70% to 80% chance” of a soft landing, Dimon said, but the odds of such an ideal outcome are “much lower” than that, Dimon said. thinking.
Also, at such times, Some investors and economists believe that the Federal Reserve Mr. Dimon said he was on track for three rate cuts this year and warned that rates could rise above 8%. The Fed’s benchmark interest rate currently ranges from 5.25% to 5.50%.
“Due to these significant and somewhat unprecedented forces, we remain vigilant,” he said.
As in previous letters, Mr. Dimon continues to believe that the United States must achieve a significant leadership position in the world through trade, military power, and a resilient economy backed by strong infrastructure spending. He said there was. He has long argued that the United States must maintain a leadership role in the West or eventually cede that role to China as an authoritarian superpower. This includes continuing to support Ukraine in its war against Russia, Dimon argued.
“Ukraine needs our help immediately, but it is important to understand that much of the money the United States is directing to Ukraine is going toward purchasing weapons and equipment, most of which will be manufactured in the United States. It’s important. Our aid not only helps Ukraine, but also goes directly to American manufacturers and helps the country rebuild its military industry capabilities for the next generation.”
Like many other CEOs, Dimon said he sees the future in use cases such as: artificial intelligence. Dimon said the bank has so far identified 400 use cases for AI, particularly in the bank’s marketing, fraud and risk departments. The bank is also considering using his AI for software development and general employee productivity planning.
“We have full confidence that the results[of AI]will be extraordinary, perhaps as transformative as any major technological invention of the past few hundred years, especially the printing press, steam Think institutions, electricity, computing, the Internet, etc.”
Dimon devoted four pages of his 61-page letter to the bank’s diversity and inclusion efforts. His vocal defense of the bank’s DEI initiatives comes as shareholders and political activists criticize such programs as a waste of company resources. Mr. Dimon argued that JPMorgan, as the nation’s largest bank, should do everything it can to lift all sectors of the economy.
“We believe it is our duty to help improve the communities and countries in which we operate, and we are not ashamed of this,” Dimon said. “We believe that by doing so, we will improve the business and general economic well-being of those communities and countries, as well as improve long-term shareholder value.”