Jamie Dimon, the CEO of JPMorgan Chase, warned on Wednesday that the US economy may experience financial instability as a result of US President Donald Trump‘s striking tariffs, which would cause the country’s markets to suffer.
According to Dimon,” I think possibly a recession is a likely outcome,” adding that current rough market declines are reasserting worries. When the Dow drops 2, 000 points, it kind of feeds on itself; it makes you feel like you’re losing money in your 401( k ) and you’re losing money in your pension. You have to reduce your activity, he said.
His remarks come as China announced an 84 % tariff on all US products, an increase of 50 % over the previous level, in response to Trump’s most recent wave of import duties. Financial markets have been shattered by trade tensions, with Dow future falling over 800 details and Treasury yields rising 20 basis points.
Dimon urged the White House to ratchet up trade agreements and acknowledged that the taxes are” somewhat explosive” situations are” creating some explosive” conditions. Take a deep breath and negotiate some deal agreements. That’s the best thing they can accomplish, he said, while reiterating that the position” could get worse if we don’t make some headway around.”
The US economy is currently projected to shrink by 0.3 % in 2025, according to JPMorgan economists, which implies a mild recession following years of steady growth. According to Dimon, the market slump is pinning “uncertainty at the micro level and confusion at the firm level,” which is having an impact on customer attitude and business activity.
The lending industry is another area where Dimon’s issues are. He warned that more failures may result from rising interest rates, sluggish inflation, and expanding record spreads. In addition to the fact that Investments are being canceled and some tie talks are closing as a result of the uncertainty, he said,” I think you’ll see more breaks issues.”
The negative side of these dangerous businesses is, he said, “what it does to the money markets and the ability of companies to raise money” We’ve already lost a few connection offers. They just state that, you know, we would rather just do this with a local institution than a US institution, he continued.
Dimon once defended taxes, telling CNBC in January that” a small inflation may be worth it to maintain national safety,” but his attitude has since changed. He warned that the long-term effects of taxes could be detrimental in his annual letter from earlier this week that the economy is experiencing” significant turbulence.”
While Dimon is still one of business America’s most powerful accents and was frequently criticized for playing senior financial roles in the 2024 election, he stayed at JPMorgan. He also urged the Senate to ensure Fed governor Michelle Bowman’s election as sin chair for guidance on Wednesday, and he also backed her.
