JPMorgan Chase CEO Jamie Dimon has expressed caution regarding the outlook for the U.S. economy over the next two years, citing a combination of financial and geopolitical risks. In an interview at the World Economic Forum in Davos, Switzerland, Dimon highlighted concerns related to events such as “Ukraine, the terrorist activity in Israel [and] the Red Sea, quantitative tightening, which I still question if we understand exactly how that works.”
Quantitative tightening refers to the Federal Reserve’s moves to reduce its balance sheet and rein in previous efforts, including bond-purchasing programs. Despite JPMorgan’s record profits and a resilient U.S. economy, Dimon emphasized the need for caution, urging against assumptions of stability.
 According to Dimon, the relatively strong performance of the stock market in recent months has led investors to underestimate potential risks. The S&P 500 market index rose 19% in the past year, nearing peak levels.
 Dimon cautioned against complacency, stating, “I think it’s a mistake to assume that everything’s hunky-dory. When stock markets are up, it’s kind of like this little drug we all feel like it’s just great. But remember, we’ve had so much fiscal monetary stimulation, so I’m a little more on the cautious side.” Goldman Sachs CEO David Solomon echoed some of Dimon’s concerns, stating that while the market environment, excluding geopolitical issues, “feels better today” than a year ago, he is troubled by the escalating levels of U.S. debt.
Solomon expressed significant concern about the growing debt, calling it a “big risk issue” that will need to be addressed and reckoned with, even if not in the next six months. In a broader discussion, Dimon touched upon various topics, including his views on Ukraine, former President Donald Trump, immigration, commercial real estate, and bitcoin. Despite his warnings and cautious stance, Dimon remains a prominent figure in the financial industry, offering insights into the potential challenges and risks facing the global economy.