JPMorgan's
"During this difficult time, we have a moment to put aside our differences, offer solutions and work with others in the Western world to come together in defense of democracy and essential freedoms, including free enterprise," Dimon wrote.
"Our country needs to work across the private and public sectors to lead once again by, among other remediations, improving American competitiveness and better fulfilling equal access to opportunity for all," the CEO continued.
Dimon also noted in his letter that the global effects of the conflict with Russia are far more important than the effects the turmoil will have on the bank.
While Dimon said that the bank's losses in Russia are likely to reach the $1 billion mark, he also said that JPMorgan could afford to lose more than $10 billion and "still be in very good shape."
The top financier also feels optimistic about the state of the U.S. economy. Between wage increases, available jobs, and over $2 trillion in excess savings, Dimon says American consumers are "in excellent financial shape" on average. However, he added that he believes the government's stimulus efforts during the pandemic went on for too long, possibly spurring inflation.
In order to combat rising inflation, Dimon says the Fed should raise interest rates "significantly higher than the markets expect" while ignoring any resultant volatility unless it directly affects the economy.
The effects of Russia's invasion of Ukraine received a considerable amount of attention in the letter. The bank's analysts now say they expect the euro area to see its GDP grow by 2% compared to the 4.5% growth rate projected just days before the invasion. In the U.S., GDP growth is expected to hit 2.5%, compared to a pre-conflict expectation of 3% growth.
"Along with the unpredictability of war itself and the uncertainty surrounding global commodity supply chains, this makes for a potentially explosive situation," Dimon wrote.
Dimon's shareholder letters aren't the only ones produced by top bank officials, but they are usually the most anticipated.
Dimon has served as CEO of JPMorgan since 2005, but he has made some statements suggesting he will retire within the next two years. In the letter, Dimon said that after he retires as CEO, he will continue as chairman of the board, a position supported by most major shareholders.
Still, there has been some skepticism over Dimon's plans to pump funding into information and technology in an effort to expand into businesses and locations where JPMorgan isn't a strong competitor currently.
