JPMorgan's Dimon: 'The most dangerous time the world has seen in decades'

JPMorgan Chase CEO Jamie Dimon on Friday warned investors that geopolitical threats in Ukraine and the Middle East could herald “the most dangerous time the world has seen in decades.”

The stark words from the head of the largest U.S. bank came in a statement accompanying JPMorgan's release of its third-quarter profits.

“The war in Ukraine compounded by last week’s attacks on Israel may have far-reaching impacts on energy and food markets, global trade, and geopolitical relationships,” Dimon said in the statement. “This may be the most dangerous time the world has seen in decades.”

JPMorgan reported a $13.15 billion profit for the July-September period. But Dimon cautioned of potential turmoil ahead.

In addition to the fighting in Ukraine and Israel, he said “extremely high government debt levels with the largest peacetime fiscal deficits ever” could prolong elevated inflation and push interest rates still higher.

The Federal Reserve’s efforts to reduce its bond holdings — a process known as quantitative tightening — could also rattle markets, he said.

“We still do not know the longer-term consequences of quantitative tightening, which reduces liquidity in the system at a time when market-making capabilities are increasingly limited by regulations,” Dimon said.