Dimon says confluence of inflation, Ukraine war may 'dramatically increase risks ahead' for U.S.

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Jamie Dimon, CEO and chairman of the biggest U.S. bank by assets, pointed to a potentially unprecedented combination of risks facing the country in his annual shareholder letter.

Three forces are likely to shape the world over the next several decades: a U.S. economy rebounding from the Covid pandemic; high inflation that will usher in an era of rising rates, and Russia's invasion of Ukraine and the resulting humanitarian crisis now underway, according to Dimon.

«Each of these three factors mentioned above is unique in its own right: The dramatic stimulus-fueled recovery from the COVID-19 pandemic, the likely need for rapidly raising rates and the required reversal of QE, and the war in Ukraine and the sanctions on Russia,» Dimon wrote.

«They present completely different circumstances than what we've experienced in the past – and their confluence may dramatically increase the risks ahead,» he wrote. «While it is possible, and hopeful, that all of these events will have peaceful resolutions, we should prepare for the potential negative outcomes.»

Dimon's letter, read widely in business circles because of the JPMorgan CEO's status as his industry's most prominent spokesman, took a more downcast tone from his missive just last year. While he wrote extensively about challenges facing the country, including economic inequality and political dysfunction, that letter broadcast his belief that the U.S. was in the midst of a boom that could «easily» run into 2023.

Now, however, the outbreak of the biggest European conflict since World War II has changed things, roiling markets, realigning alliances and restructuring global trade patterns, he wrote. That introduces both risks and opportunities for the U.S. and