Sep 24, 2024 01:56 PM IST
Jamie Dimon of JP Morgan warned about ongoing global inflation and recession risks, while praising the resilience of the US and India.
JP Morgan CEO Jamie Dimon said that inflation and recession risks are persistent globally but US and India’s economies are showing resilience. Talking to The Times of India, he said, “There’s a lot of noise about recession – the US, Europe and a slowing China.” Even though China’s economy has slowed, India is performing well alongside the US, he said.
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“For example, JP Morgan moves $10 trillion a day. Investors are making decisions, every single day. People are going to work, sending kids to schools and buying food – that’s what drives the economies”, he said pointing out that everyday economic actions are crucial to understanding larger economic trends.
Jamie Dimon said that geopolitical issues, not just financial markets, will largely dictate the future trajectory of the global economy, asserting, “Geopolitics is far more important for mankind than interest rates in Japan and the United States.”
Expressing concern over conflicts in Ukraine and Middle East, he said, “Ukraine has gotten worse. The missiles and the bombardment are getting worse.”
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On implications of the Federal Reserve’s recent interest rate cuts, he said, “It looks that way, but I’m a little cautious in that.”
Talking about divergent monetary policies between the US and Japan, Jamie Dimon explained that this signifies a normalization in the global financial landscape. He said, “It’s just a normalization. Japan is still kind of zero, and they’re moving up a little bit.” Capital flows will depend more on economic growth than solely on interest rates, he said, adding, “The real thing that’s gonna drive flows will be growth in the economies, and not just the interest rate.”
He praised India and said that the country’s “Aadhaar system, the banking accounts, reforming the GST, building national infrastructure, reducing regulations. These things help the country and help lower-income folks, in addition to the wealthy. Today, we do research on close to 140 companies which helps educate the world about Indian companies.”
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