- South Korea's Han Kang wins literature Nobel
- Federer lauds retiring Nadal's 'incredible achievements'
- Ikea posts fall in annual sales after lowering prices
- Australia beat China 3-1 to resurrect World Cup campaign
- Stock markets diverge, oil gains after China rebounds
- Nadal defied injury woes in record-breaking career
- Nadal v Djokovic, French Open, 2006: Chapter One in epic rivalry
- World can't 'waste time' trading climate change blame: COP29 hosts
- Pakistan at 23-1 after Brook triple hundred takes England to 823-7
- Zelensky meets Starmer, Rutte on whirlwind tour of Europe
- South Korean same-sex couples make push for marriage equality
- Rafael Nadal calls time on epic tennis career
- Mumbai declares day of mourning for Indian industrialist Ratan Tata
- Philippines confronts China over South China Sea at ASEAN meet
- Kim Sei-young shoots 62 to take two-stroke lead at LPGA Shanghai
- The haircuts that help traumatised Ukrainian soldiers heal
- Sinner crushes Medvedev to set up potential Alcaraz Shanghai semi
- 7-Eleven owner restructures to fight takeover
- England's Harry Brook blasts triple century against Pakistan
- Chinese electric car companies cope with European tariffs
- Zelensky in London for whirlwind tour of Europe ahead of US vote
- Sri Lanka recovering faster than expected: World Bank
- Hong Kong, Shanghai rally as most markets track Wall St record
- Record-breaking Root, Brook both pass 200 as England pile up 658-3
- Football mourns Greek defender George Baldock's shock death at 31
- Uniqlo owner reports record annual earnings
- Hong Kong, Shanghai rally as markets track Wall St record
- Indonesia biomass drive threatens key forests: report
- Home is far away for Madagascar in AFCON qualifying
- Two months on, Donbas soldiers begin to question Kursk offensive
- Rugby Australia to counter-sue in dispute with Melbourne Rebels
- Mumbai mourns Indian industrialist Ratan Tata
- Philippines challenges China over South China Sea at ASEAN meet
- Mets advance on Lindor blast, Dodgers stay alive in MLB playoffs
- Injury-ravaged Krygios aiming to return at Australian Open
- Greek international Baldock, dead at 31: family
- EU talks deportation hubs to stem migration
- Deaths and repression sideline Suu Kyi's party ahead of Myanmar vote
- S. Africa offers a lesson on how not to shut down a coal plant
- China opens $71 bn 'swap facility' to boost markets
- Mets advance on Lindor grand slam, Yankees and Tigers win
- Taiwan President Lai vows to 'resist annexation' of island
- China's solar goes from supremacy to oversupply
- Asian markets track Wall St record as Hong Kong, Shanghai stabilise
- 'Denying my potential': women at Japan's top university call out gender imbalance
- China's central bank says opens up $70.6 bn in liquidity to boost market
- Zelensky on whirlwind tour of Europe ahead of US vote
- Youth facing unprecedented wave of violence, UN envoy warns
- 'A casino in every kitchen': Brazil's online gambling craze
- Nobel chemistry winner sees engineered proteins solving tough problems
Strong US economy faces unprecedented risks: JPMorgan's Dimon
Major economies worldwide including the United States are facing challenging times amid an unprecedented confluence of events, including the war in Ukraine and "unparalleled" inflation, JPMorgan Chase Chief Executive Jamie Dimon said Monday.
While prices and wages were rising even before the war, Russia's invasion of its neighbor has caused a surge in energy prices, and Dimon warned in his annual letter to shareholders, "Along with the unpredictability of war itself and the uncertainty surrounding global commodity supply chains, this makes for a potentially explosive situation."
The US economy remains strong and hopefully "has Covid-19 in its rearview mirror," but competing factors facing the world's largest economy "present completely different circumstances than what we've experienced in the past -- and their confluence may dramatically increase the risks ahead."
Dimon praised the Federal Reserve for making clear that it will raise interest rates as much and as fast as needed to contain inflation, while also starting to reduce its massive bond holdings.
US consumer price inflation jumped 7.9 percent in February compared to a year earlier, and the Fed last month raised the benchmark lending rate off zero for the first time since the start of the pandemic in March 2020.
Dimon wrote that he doesn't envy the central bank, which "needs to deal with things it has never dealt with before (and are impossible to model)."
In the wide-ranging, nearly 50-page document, Dimon offered his prescriptions for American political and economic issues and geopolitical challenges, including relations with Russia and China, and also outlined his bank's strategies.
He argued that US industries will have to restructure supply chains to improve resilience and protect national security.
"You simply cannot rely on countries with different strategic interests for critical goods and services," he said, adding that change could take place over time to avoid disruption.
He also called on the United States to boost energy production and help Europe wean itself off Russian supply with a new "Marshall Plan."
JPMorgan's economists forecast Russia's GDP will contract by 12.5 percent by midyear -- worse than the drop after its 1998 debt default -- while the euro area's growth will be cut in half to about two percent, and the United States will see a 2.5 percent expansion, though Dimon warned those estimates are highly uncertain.
J.Oliveira--AMWN