Geopolitics more crucial than interest rates in Japan and US, says JPMorgan CEO

Geopolitics currently holds the highest risk and is more important for mankind than interest rates in Japan and the United States, JPMorgan CEO Jamie Dimon said in an interview.

Speaking to The Economic Times, Dimon expressed concerns regarding the conflict situation worsening in Ukraine with the Houthi attacks on American ships among other incidents also posing significant danger.

On a question about the US and Japan moving in opposite directions on rates, the yen carry trade, and if the worst was behind us, Dimon said:

On Ukraine, Houthi attacks, and oil supply

"Ukraine has gotten worse. The missiles and the bombardment are getting worse. Iran, the Houthi attacks on American ships in the Red Sea. These are very dangerous situations," Dimon said.

On a question that despite the geopolitical situation, oil prices were falling, Dimon said the commodity was in oversupply today but there was likely to be an undersupply a year or two later.

He said this was a great lesson when we talked about the importance of safe, secure, reliable, affordable energy.

"If you look down the road, there'll probably be undersupply of oil. That's maybe a year or two away," he said.

On talk of recession in the US, Europe, and slowdown in China

Dimon said it was possible for China to recover and pick up from the kind of slowdown it was witnessing.

However, he expressed confidence in India and America.

Dimon said:

Underscoring the complexities of an economy, Dimon added,

On India's performance and its ambition to be a $7-trillion economy

Dimon acknowledged that India was performing better than most (countries).

"I think you guys here have done a fabulous job at that," he said.

He listed the Aadhar system, banking accounts, GST reforms, national infrastructure development and reduction in regulations as key factors boosting the country and helping the lower-income population, in addition to the wealthy.

Asked about his take on India's ambition to be a $7 trillion economy in relation to the country's financial markets, Dimon said the prospects for the same happening were "very bright".

He highlighted how JPMorgan banked 850 multinationals in India and has close to 55,000 people in the Corporate Centre supporting global operations and technology.

"It's engineering, cyber, tech, data, AI. We are building out a robust payment systems here for clients . And all these things you're doing are gonna make you grow more. And it's achievable. And you need strong leadership, as you have with PM Modi," he said, disregarding the impact of the ruling party's reduced majority in the government on the way he sees India.

"The government, democracy is that way, right? So any democracy you operate in, you have to understand it may move around a little bit, like American democracy," he said.