The JPMorgan CEO warned that investors are downplaying severe risks.
Transcript:
Kelsey Barberio: Is the stock market reading the economy all wrong? That’s at least what JPMorgan CEO, Jamie Dimon thinks.
Speaking at JPMorgan’s annual investor day Dimon, one of Wall Street’s most influential voices said that markets are showing “an extraordinary amount of complacency” following recent wild swings.
He warned that both investors and central bankers are underestimating the risk created by record U.S. deficits, tariffs and rising global tensions…. adding that the recent Wall Street comeback from April lows downplays the potential threat of higher inflation and even stagflation.
Dimon also cautioned that the U.S. stock market could fall by as much as 10% as companies begin to adjust earnings expectations amid rising costs.
This warning comes just days after research firm Moody’s downgraded its U.S. credit rating over concerns about the U.S. government’s growing debt, making it the last of the big three agencies to strip the U.S. of its triple A status.]
That’ll do it for your daily briefing. From New York City, I’m Kelsey Barberio with TheStreet.
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