JPMorgan CEO Jamie Dimon claimed on Tuesday the US financial system “is weakening” after the Labor Division slashed practically 1 million jobs from its preliminary employment estimates for the yr ending March 2025.
The head of the nation’s largest bank advised CNBC that the “huge revision” by the Bureau of Labor Statistics to decrease its non-farm payrolls information by 911,000 pointed to stuttering US development.
“I believe the financial system is weakening,” Dimon stated at an occasion to mark the opening of the banking big’s new $3 billion Manhattan HQ. “Whether or not it’s on the best way to recession or simply weakening, I don’t know.”
“There’s loads of various factors within the financial system proper now,” he added, pointing to weakening client spending whereas citing robust company earnings.
The long-serving CEO additionally forecast that the Federal Reserve will “most likely” scale back its key rate of interest when central bankers meet later this month.
Sal Guatieri, senior economist at BMO Capital Markets stated the revision painted “a a lot weaker portrait of the job market than initially thought. Whereas the revision doesn’t say a lot about what has occurred since March, it suggests the labor market had much less momentum heading into the commerce struggle. And, current information counsel the market has downshifted additional.”
Figures launched earlier this summer time indicated employment development had slowed to a close to halt in July, including simply 73,000 jobs.
That report prompted President Donald Trump to fireside the Bureau of Labor Statistics chief Erika McEntarfer, alleging that her numbers had been “manipulated for political functions.”
On Friday, the bureau stated the financial system generated simply 22,000 jobs in August, elevating fears that unpredictable taxes on imports have created a lot uncertainty that companies are reluctant to rent.
Nonetheless, official US authorities figures launched on the finish of final month by the Bureau of Financial Evaluation estimate that the financial system grew by 3.3% within the second quarter of 2025, marking a robust rebound from the 0.5% lower within the first three months of this yr.
