Jamie Dimon, Chairman and Chief Government officer (CEO) of JPMorgan Chase & Co. (JPM) speaks to the Financial Membership of New York in Manhattan in New York Metropolis, U.S., April 23, 2024.
Mike Segar | Reuters
JPMorgan Chase CEO Jamie Dimon mentioned Wednesday he sees the U.S. economic system doubtless headed to recession as President Donald Trump’s tariffs roil monetary markets.
With the commerce struggle between the U.S. and China intensifying, stocks and bonds sold off aggressively once more in morning commerce. Inventory market futures slumped and bond yields spiked amid issues over monetary and financial stability introduced on by the tit-for-tat trade between the 2 nations.
“I feel in all probability [a recession is] a probable end result,” Dimon mentioned on Fox Enterprise’ “Mornings With Maria” present.
Recession fears have been rising on Wall Road because the Trump tariffs spur uncertainty about how far the commerce struggle will escalate.
Within the newest improvement, China said it will slap an 84% tariff on all U.S. items, up 50 share factors from the earlier stage, as U.S. reciprocal duties take impact world wide. Dow futures had been off greater than 800 factors whereas the 10-year Treasury yields soared almost 20 foundation factors, or 0.2 share level.
JPMorgan economists anticipate U.S. gross domestic product to contract 0.3% this yr, a light recessionary name however coming after a powerful yr for development.
“Markets aren’t all the time proper, however generally they’re proper,” Dimon mentioned. “I feel this time they’re proper as a result of they’re simply pricing uncertainty [at] the macro stage and uncertainty [at] the micro stage, on the precise firm stage, after which the way it impacts client sentiment. It is laborious to inform.”
Previously, Dimon has been a supporter of tariffs.
Throughout a January interview with CNBC on the World Financial Discussion board in Davos, Switzerland, the chief mentioned folks should “get over it” regarding tariffs and mentioned a little bit inflation can be value it to protect nationwide safety.
On Wednesday, he inspired the U.S. to make offers with its buying and selling companions whereas cautioning that market response may worsen if that does not occur.
“Take a deep breath, negotiate some commerce offers. That is one of the best factor they’ll do,” he mentioned. “I am taking a peaceful view. However I feel it may worsen if we do not make some progress right here.”
Individually, Dimon inspired the Senate to verify Fed Governor Michelle Bowman as vice chair for supervision, the chief overseer of the banking and finance system. Bowman is up for a affirmation listening to Thursday.
Correction: An earlier model contained quotes misattributed to Jamie Dimon.
