JPMorgan CEO Jamie Dimon: Russia-Ukraine war, inflation will have ‘unprecedented’ economic impact

JPMorgan CEO Jamie Dimon: Russia-Ukraine war, inflation will have ‘unprecedented’ economic impact

Russia’s invasion of Ukraine and penalizing sanctions against Moscow have roiled financial markets and wreaked havoc on global supply chains. And JPMorgan CEO Jamie Dimon thinks the worst is yet to come.

Dimon warned in his closely-read annual letter to shareholders on Monday that Russia’s ongoing invasion of Ukraine is expected to meaningfully slow the U.S. and global economy.

JPMorgan economists predict consequences from the war and resulting sanctions against Russia will reduce the country’s gross domestic product (GDP) by as much as 12.5% by the middle of this year. The potential spillover effects have also led the bank to cut its forecast for the rest of Europe, with their GDP projections now at an annual rate of 2% in 2022, compared to the pace of 4.5% economists had expected just six weeks ago.