In his annual letter to investors, JP Morgan Chase CEO Jamie Damon called on the White House to take a stronger stance against "new serious geopolitical realities" emerging after russia's invasion of Ukraine, saying democracies should take a stand "against all forms of evil".
This was reported by The Guardian.
"As I write this, the war in Ukraine has been raging for over a month, creating a significant refugee crisis. We do not know what it will be like in the end, but military actions in Ukraine and sanctions against russia already have a significant economic impact. They have shaken the world's markets for oil, raw materials and agricultural products," he said.
However, according to Daimon, the wider impact of the war, including the "potential restructuring of the global order, is much more important".
Noting that war could affect geopolitics for decades, he added: "We must resist russia's challenge with bold decisions."
Damon called on the United States to develop a Marshall Plan to reduce the West's dependence on russian energy, citing the 1948 Harry Truman Relief Program, which helped Western Europe recover from World War II.
"Our European allies, who are heavily dependent on russian fossil fuels, need our help," he wrote. - “As we see - and we know from past experience - oil and gas supply can be easily disrupted physically or through additional sanctions, which will significantly affect energy prices. National security requires energy security for ourselves and for our allies abroad."
The head of the bank added that the US response should also include a larger US military budget and the deployment of more troops at NATO's borders "as needed", adding that the US government should promise billions of dollars to rebuild Ukraine and support refugees in Europe.
JP Morgan Chase analysts already predict that EU GDP will grow by about 2% in 2022 instead of the 4.5% expected before the invasion of Ukraine. Meanwhile, GDP growth in the US is expected to be only 2.5% compared to previous estimates of 3% in 2022.