JPMorgan, $JPM, CEO Jamie Dimon says he worries geopolitical events and U.S. political polarization "may very well be creating risks that could eclipse anything since World War II"

JPMorgan, $JPM, CEO Jamie Dimon says he worries geopolitical events and U.S. political polarization "may very well be creating risks that could eclipse anything since World War II."

Dimon's remarks were featured in his annual shareholder letter, a platform he often uses to address a range of topics including politics, regulation, and global events, and their potential impact on JPMorgan Chase and the broader economy.

He emphasized the challenge to America's global leadership role from external sources and internal polarization. Dimon stressed the importance of setting aside differences and collaborating with other Western nations to uphold democracy and protect essential freedoms, including free enterprise.

Regarding global dynamics, Dimon highlighted the changing landscape where dictatorships and oppressive regimes are leveraging their economic and military might against perceived weaknesses in Western democracies. He urged the U.S. to lead not just militarily but also economically, diplomatically, and morally to counter these challenges.

Dimon expressed concerns about continued high levels of deficit spending by the U.S. and other countries, as well as the necessity for countries like the U.S. to invest in green infrastructure and remilitarization. These factors are likely to keep inflation higher than anticipated by investors.

In terms of economic outlook, Dimon indicated a less optimistic view than the broader market regarding a "soft landing" for the U.S. economy, defined as modest growth with decreasing inflation and interest rates. While investors are pricing in a 70% to 80% chance of a soft landing, Dimon believes the likelihood is lower.

Dimon concluded by emphasizing the profound impact of artificial intelligence (AI), which he believes will be as transformative as historical technological inventions such as the printing press, the steam engine, electricity, computing, and the Internet.