JPMorgan boss Jamie Dimon sounds alarm on ‘the most dangerous time the world has seen in decades’ as Israel-Gaza war sparks economy fears

JPMorgan Chase CEO Jamie Dimon sounds the alarm as the Israel-Gaza war fuels economic fears and predicts ‘the most dangerous time the world has seen in decades’ is on the way.

Dimon expressed deep concern in a third-quarter earnings call on Friday, warning investors that the multitude of global threats could have “far-reaching impacts on energy and food markets, global trade and geopolitical relations.”

He believes that the ongoing conflicts in Ukraine and recent terrorist attacks by Hamas on Israel can have far-reaching impacts on the economy.

Additionally, Dimon highlighted the escalating national debt as a risk that could keep inflation and interest rates high.

He warned clients about the possibility of not only sustained but potentially rising interest rates. He also emphasized the need to prepare for a range of scenarios, to ensure that the bank can serve its customers consistently in any environment.

Dimon told CNN on Friday that bank executives across the country are “climbing the wall of worry.” He explained how markets typically stay strong through economic uncertainty and negative news.

“And we must,” said Dimon. “That’s kind of our job, to be prepared for potential outcomes that you don’t expect.”

He emphasized the importance of preparing for what may come next rather than focusing on the current state.

“We do a hundred stress tests a week,” Dimon told CNN. “Usually geopolitics presents itself as a deep recession or a mild recession… And markets doing well is no reason to ever say they will continue to do well.”

Nevertheless, the bank still beat analysts’ expectations in the last quarter.

JPMorgan Chase reported earnings of $4.33 per share versus the $3.90 forecast. Revenue also beat expectations at $39.9 billion, beating the $39.57 billion forecast, according to Refinitiv data.

JPMorgan Chase posted a profit of $13.15 billion, or $4.33 per share, for the third quarter, an increase of 35% over the previous year.

However, Dimon noted that these strong results were partly due to factors such as net interest income and credit costs that may not be sustainable.

It comes as analysts have warned that the Israel-Hamas war could cause turmoil in the world economy.

America’s economy could be rocked by the war between Israel and Hamas, analysts said – warning that the dollar could be affected and oil prices could be hit quickly.

The conflict could lead to higher inflation in the United States, which would be a major problem for President Joe Biden heading into the election year.

Economists at Goldman Sachs reported Tuesday that the consumer price index is expected to continue its downward trajectory, falling to 3.98 percent in September from 4.3 percent in August.

The news will be welcomed by the White House, but their work to reduce inflation could be undone by the rapidly developing events in the Middle East.

The turmoil could affect the Suez Canal – the fastest shipping route between Europe and Asia, which carries seven percent of all world trade and is responsible for the passage of $10 billion worth of goods every day.