Conflict between Russia-Ukraine, US-China tension is 'far more concerning' than the recession, says JPMorgan CEO Jamie Dimon

By: Michael Wilson

October 27, 2022 6:28 AM

The CEO of JPMorgan Chase, Jamie Dimon, has said that the tensions between the United States and China, as well as the war between Russia and Ukraine, are "far more concerning than whether there is a mild or slightly severe recession." To paraphrase, "I would worry much more about the geopolitics in the world currently."

Jamie Dimon, CEO of JPMorgan, Says There Is Something "Far More Concerning" Than the Recession

On Tuesday, Jamie Dimon, CEO of JPMorgan Chase, spoke at the Future Investment Initiative conference in Riyadh, Saudi Arabia, an annual event sometimes dubbed "Davos in the Desert." There are about 400 top-level executives from the United States, Europe, and Asia present at the conference.

Dimon stated that geopolitical uncertainties are among the greatest worries facing the global economy right now, and that they are much riskier than a recession. In the words of the JPMorgan executive:

"Russia and Ukraine's geopolitical situation, as well as that between the United States and China, and the relationships of the Western world, are of paramount importance. That would worry me much more than the presence or absence of a moderate recession."

The CEO of JPMorgan Chase added that the company does not place a premium on avoiding a recession. "We'll get through it," he said emphatically. "The geopolitics of the world currently will indeed worry me far more."

His words of caution were nonetheless sobering: "There's a lot of stuff on the horizon which is bad and could — not necessarily — but could put the U.S. in recession." Dimon has previously predicted an economic hurricane and something far worse than a recession. In a recent interview, he predicted that a recession in the United States economy is possible within the next six months.

Tensions between the Biden administration and the Saudi royal family have reached an all-time high. Earlier this month, the Saudis coordinated a reduction in oil production with OPEC+, the producer group comprising OPEC and its allies, including Russia. After OPEC+ announced it would reduce its oil production target by 2 million barrels per day, Vice President Joe Biden warned that "there will be consequences" for U.S. relations with Saudi Arabia. It was reported on Monday that Crown Prince Mohammed bin Salman had made fun of Biden.

According to JPMorgan's CEO, tensions between the United States and Saudi Arabia can be resolved. On Tuesday, however, he issued a stern warning against the "everything our way" policy of the United States, explaining:

"U.S. foreign policy need not be "our way or the highway." I doubt that any group of allies would agree on everything. I have faith that the people on both sides are making progress, and that these nations will continue to be allies in the future."