Tensions between the United States and China, the Russia-Ukraine war are much more worrying than the recession

JPMorgan Chase CEO Jamie Dimon says tensions between the United States and China and the Russia-Ukraine war are “far more concerning than whether there is a mild or slightly severe recession“. He pointed out, “I would be much more concerned about the geopolitics of the world today“.

Jamie Dimon, boss of JPMorgan, warns of something “much more worrisome” than the recession.

JPMorgan Chase CEO Jamie Dimon talked about something far more worrisome than an economic recession on Tuesday at the Future Investment Initiative in Saudi Arabia in Riyadh, an annual event dubbed “Davos in the desert“. About 400 international executives are attending the conference along with American, European and Asian business leaders.

Jamie Dimon explained that he sees geopolitical uncertainties as much riskier than a recession, noting that they are among the biggest concerns in the global economy right now. The JPMorgan executive stated:

The most important thing is the geopolitics around Russia and Ukraine, America and China, the relationships of the Western world. To me, that would be far more concerning than whether there is a mild or slightly severe recession.

The JPMorgan chief added that a recession is not the most important thing JPMorgan is thinking about. “We’re going to get through this“, he stressed. “I would be much more concerned about the geopolitics of the world today“.

Nevertheless, he cautioned, “There are a lot of things on the horizon that are bad and could-not necessarily-but could put the United States in a recession.“Jamie Dimon has previously warned of an economic hurricane and something worse than a recession. He recently said the U.S. economy could be in recession in six months.

Relations between the Biden administration and the Saudi leadership are at an all-time low. The Saudis orchestrated an oil production cut earlier this month with OPEC+, the producer group comprising the Organization of the Petroleum Exporting Countries (OPEC) plus allies including Russia. President Joe Biden pledged that “there will be consequences“for U.S. relations with Saudi Arabia after OPEC+ said it would cut its oil production target by 2 million barrels per day. Crown Prince Mohammed bin Salman reportedly mocked Biden on Monday.

The JPMorgan CEO believes the U.S. and Saudi Arabia will be able to overcome their recent tensions. However, he cautioned against the U.S. policy of “everything our way” on Tuesday, stating:

U.S. policy should not be, ‘Whatever we want’…I can’t imagine allies agreeing on everything. They’ll get there and I’m confident that people on both sides will get there and that these countries will remain allies in the future.