JPMorgan Chase Chairman and CEO Jamie Dimon (JPM) tells Yahoo Finance that the geopolitical situation right now is "maybe a little bit more like pre-World War II." In an exclusive interview with Yahoo Finance Executive Editor Brian Sozzi, Dimon discusses Russia's invasion of Ukraine. Dimon states that he likes the fact that the Biden administration and leaders such as Senator Mitch McConnell (R-KY) are saying "we need to take care of this. It is for America, because if we don't fix this... the world may not be completely safe for freedom and democracy as we know it for the next 100 years."

Dimon also shares one of the issues he has with the Inflation Reduction Act, arguing that "it irritated all of our allies. We don't want to tear asunder of the economic alliances."

Click here to see the full interview with JPMorgan Chase CEO Jamie Dimon.

Video Transcript

JAMIE DIMON: I knew it the day afterwards-- a free, democratic, European nation was invaded by hundreds of thousands of well-armed troops of Russia, protected by nuclear blackmail. And that nuclear blackmail part, just put in the back of your mind-- you want to scare people, if you have nuclear proliferation, that's the worst thing.

At the time, we said we don't know how it's going to end and when it's going to end. Now it's not quite two years, but it'll be two years in February. You have 600,000 casualties along a 600-mile front with no real end in sight, and it's affecting, obviously, humanitarian crisis. But oil and food security is paramount, and it showed the world we don't really have that. It's stretching all alliances, people trying to figure out who's on what side here.

And obviously, the most important is it's hurting and damaging the ability of China and America to strike a better relationship. And then you have the Israeli terrorist act, and those things are bad.

And I look at the Berlin Wall, that went up and came down, not a bullet was fired. You have 600,000 casualties here. And so I look at this is maybe a little bit more like pre-World War II. We got to get this right.

And I like the fact that the Biden administration and others now, Mitch McConnell and leaders are saying we need to take care of this. It is for America, because if we don't fix this, the world may not be completely safe for freedom and democracy as we know it for the next 100 years.

And to do it, by the way, we need-- obviously, the military stuff is important. We also need diplomacy, development finance, we have to work with our allies. So one of the problems of the IRA act was it irritated all our allies. We don't want to tear asunder the economic alliances, because all these other people are going to cherry pick. And so we have to be very careful how this gets navigated over the next 5 or 10 years.

BRIAN SOZZI: In light of these challenging geopolitical situations, the dysfunction we're seeing in government, is that hurting our standing in the world at such a critical time?

JAMIE DIMON: I think the way you should look at it in the world is if we reach out our hands to people, people are going to take it. They may get mad at us sometimes for being a little arrogant and a little bit thoughtless, but we are trusted. And we're the only ones-- and I'm not saying this as an arrogant American. We're the only ones who can provide the leadership, because we have the military, the muscle, the might, the money, the capability. We've got to do it in conjunction with allies. It can't be the ugly American, we're not going to get our own way every time, and I think they understand that.

They are rattled when they see-- if you look at American policy, it's been less consistent. So they do say, can we trust you, will you be there, will the treaty stand. And those are legitimate concerns. It's not over, but we've created a certain amount of uncertainty that I wish we hadn't.

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