JPMorgan Chase & Co. CEO Jamie Dimon on Friday sounded a recession warning again, attributing it to Donald Trump’s tariff move.
As per a report by Reuters, the JPMorgan CEO said odds of recession in the US are at 50 per cent.
Announcing the first quarter results of the investment banking firm, Jamie Dimon remained circumspect on the economy as corporate America navigated the fallout of President Donald Trump’s tariffs. Over the past week, the Trump tariffs have have raised inflationary risks and fears of recession.
“Clients have become more cautious amid an increase in market volatility driven by geopolitical and trade-related tensions,” Dimon said, adding, “The economy is facing considerable turbulence, including geopolitics.”
Recession a ‘likely outcome’: Jamie Dimon
Earlier, the JPMorgan Chase CEO also told Fox Business about his recession worries.
“I hear it from just everybody now, ‘I’m going to cut back a little bit, I’m gonna wait, see what happens.’ That is kind of recessionary talk,” he said in an interview.
When asked about his personal opinion on the matter, Dimon said recession is a ‘likely outcome’.
“I am going to defer to my economists at this point, but I think probably that’s (recession) a likely outcome,” he said.
Jamie Dimon’s letter to shareholders
Earlier this week, Jamie Dimon had warned of a recession in the US in his letter to shareholders.
“The recent tariffs will likely increase inflation and are causing many to consider a greater probability of a recession,” he said.
The CEO also flagged that there has been an ongoing economic turbulence due to these factors.
“The economy is facing considerable turbulence (including geopolitics), with the potential positives of tax reform and deregulation and the potential negatives of tariffs and “trade wars,” ongoing sticky inflation, high fiscal deficits and still rather high asset prices and volatility,” he said.
He further warned about short-term effects of the tariffs announced by Donald Trump.
“As for the short-term, we are likely to see inflationary outcomes, not only on imported goods but on domestic prices, as input costs rise and demand increases on domestic products. How this plays out on different products will partially depend on their substitutability and price elasticity,” he said.
“The economy is facing considerable turbulence (including geopolitics), with the potential positives of tax reform and deregulation and the potential negatives of tariffs and “trade wars,” ongoing sticky inflation, high fiscal deficits and still rather high asset prices and volatility,” he said.
He further warned about short-term effects of the tariffs announced by Donald Trump.
“As for the short-term, we are likely to see inflationary outcomes, not only on imported goods but on domestic prices, as input costs rise and demand increases on domestic products. How this plays out on different products will partially depend on their substitutability and price elasticity,” he said.
The Donald Trump administration last week unveiled steep reciprocal tariffs on dozens of countries, only to pause many of them on Wednesday. Since the tariffs were first announced, global markets have seen severe bloodbath but largely recovered on the announcement of the pause.
