Investing.com -- JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon said Monday the US needs to "get stronger" to maintain its military and economic might, detailing plans to deploy more than $1 trillion toward that goal.

"With the right policies and committed actions, the United States will maintain the strongest military and strongest economy and will remain the bastion of freedom and the arsenal of democracy," Dimon wrote in his annual letter to shareholders. He added that "no country has a divine right to success."

The 48-page letter dedicates its longest section to "Critical Issues Facing America and the World," including global conflicts that "should permanently dispel the illusion that the world is safe."

Dimon warned that the war in Iran risks future oil and commodity price shocks, noting that "time will tell" whether it achieves short- and long-term goals in the region.

He described Europe as "currently on a bad path" and called for "one big, beautiful free trade agreement with all of Europe" in exchange for economic and military reforms.

The remarks follow JPMorgan's launch of an "American Dream Initiative" last week, aimed at expanding economic opportunity in US communities. The bank announced in October a "Security and Resiliency Initiative" that pledged $1.5 trillion over the next decade to industries supporting US economic security and resiliency.

On private credit, Dimon said it "probably does not" pose a systemic risk but cautioned that losses on leveraged lending will be higher than expected due to "modestly" weakened credit standards. He noted that private credit lacks transparency and rigorous loan valuations, which increases the chance investors will sell if conditions worsen.

Dimon expressed concern about private equity firms not taking more companies public despite healthy markets, with some assets moved to continuation funds instead. Private equity investments are now held for an average of seven years, double previous levels. "We have generally had nothing but a bull market since the great financial crisis — it's hard to imagine what will happen if and when we have an extended bear market," he wrote.

The CEO noted that JPMorgan has fewer employees in New York City than a decade ago while increasing headcount in Texas, a trend he said will likely continue. He cited high taxes among New York City's challenges.

On artificial intelligence, Dimon said adoption will likely be "far faster" than other technological improvements such as electricity or the internet. "We will not put our heads in the sand," he said about JPMorgan's response to AI.

Dimon called the bank's reaction to recent capital proposals from regulators "mixed," saying some parts were "frankly nonsensical."