{"id":285207,"date":"2024-04-10T07:00:34","date_gmt":"2024-04-10T07:00:34","guid":{"rendered":"https:\/\/www.thetruthseeker.co.uk\/?p=285207"},"modified":"2024-04-11T07:09:42","modified_gmt":"2024-04-11T07:09:42","slug":"global-economic-risks-could-eclipse-anything-since-second-world-war-says-jp-morgan-boss","status":"publish","type":"post","link":"https:\/\/www.thetruthseeker.co.uk\/?p=285207","title":{"rendered":"Global economic risks \u2018could eclipse anything since second world war\u2019, says JP Morgan boss"},"content":{"rendered":"

Kalyeena Makortoff \u2013 The Guardian Apr 9, 2024<\/strong><\/h1>\n
\"\"<\/a><\/div>\n

The boss of the US bank JP Morgan<\/a> has warned that the world could be facing the most dangerous moment since the second world war, putting lives and economic growth at risk.<\/p>\n

In his annual letter to investors<\/a>, Jamie Dimon said the world had been \u201cgenerally on a path to becoming stronger and safer\u201d in recent years but had suffered a major reversal in February 2022 when Russia invaded Ukraine.<\/p>\n

\u201cWhen terrible events happen, we tend to overestimate the effect they will have on the global economy,\u201d Dimon said. \u201cRecent events, however, may very well be creating risks that could eclipse anything since world war II \u2013 we should not take them lightly.\u201d<\/p>\n

The Wall Street banking boss did not mention Israel\u2019s assault on Gaza in recent months, but said the \u201cabhorrent attack on Israel and ongoing violence in the Middle East\u201d had also \u201cpunctured many assumptions about the direction of future safety and security, bringing us to this pivotal time in history\u201d.<\/p>\n

In a wide-ranging letter to investors covering everything from politics and artificial intelligence to interest rates, Dimon warned that the breakdown in international relations \u201cmay end up having virtually no effect on the world\u2019s economy or it could potentially be its determinative factor\u201d.<\/p>\n

He added: \u201cThe ongoing wars in Ukraine and the Middle East could become far worse and spread in unpredictable ways. Most important, the spectre of nuclear weapons \u2013 probably still the greatest threat to mankind \u2013 hovers as the ultimate decider, which should strike deep fear in all our hearts.<\/p>\n

\u201cThe best protection starts with an unyielding resolve to do whatever we need to do to maintain the strongest military on the planet \u2013 a commitment that is well within our economic capability.\u201d<\/p>\n

It follows similar warnings from the International Monetary Fund, which in December said<\/a> the global economy was on the brink of a second cold war that could \u201cannihilate\u201d progress made since the collapse of the Soviet Union.<\/p>\n

Gita Gopinath, the IMF\u2019s first deputy managing director, said at the time that the world was at a \u201cturning point\u201d as tensions mounted between the most powerful nations, and that the accelerating fragmentation of the world economy into regional power blocs \u2013 centred around the US and China \u2013 risked wiping out trillions of dollars in global output.<\/p>\n

\u201cIf we descend into cold war two, knowing the costs, we may not see mutually assured economic destruction. But we could see an annihilation of the gains from open trade,\u201d she said.<\/p>\n

Dimon warned that a surge in government spending \u2013 linked not only to higher military expenditure but also climate transition plans, healthcare costs and shifting global supply chains \u2013 could lead to \u201cstickier inflation and higher rates than markets expect\u201d.<\/p>\n

JP Morgan, he said, already had contingency plans in place for US interest rates \u2013 which are now in a range of 5.25% to 5.5% \u2013<\/strong> to rise higher than 8%, or fall as low as 2%.<\/p>\n

\u201cWe have ongoing concerns about persistent inflationary pressures and consider a wide range of outcomes to manage interest rate exposure and other business risks,\u201d he added.<\/p>\n

The IMF on Monday warned the world\u2019s most powerful central banks against keeping interest rates high for too long.<\/p>\n

The Washington-based fund said the Bank of England should be wary<\/a> of keeping current high borrowing costs because of a higher proportion of UK homeowners on a fixed-rate mortgage than in some countries, which had weakened the impact of ratcheting up interest rates.<\/p>\n

It comes after the Organisation for Economic Co-operation and Development, a member body including 38 of the world\u2019s leading democratic economies, said food prices across the world\u2019s richest nations rose in February at the slowest rate since before the Russian invasion of Ukraine<\/a>.<\/p>\n

It could help fuel several interest rate cuts this year, although analysts have become more cautious in recent weeks about the extent of any reductions.<\/p>\n

Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

In annual letter to investors, Jamie Dimon warns \u2018wars in Ukraine and Middle East could become far worse\u2019<\/p>\n","protected":false},"author":39262,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[66],"tags":[],"class_list":["post-285207","post","type-post","status-publish","format-standard","hentry","category-Economics"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/285207","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=\/wp\/v2\/users\/39262"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=285207"}],"version-history":[{"count":3,"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/285207\/revisions"}],"predecessor-version":[{"id":285246,"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/285207\/revisions\/285246"}],"wp:attachment":[{"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=285207"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=285207"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=285207"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}