JPMorgan Chase CEO Jamie Dimon warned on Wednesday that the US economy is likely heading into a recession due to mounting concerns over the intensifying trade war with China.
In an appearance on Fox Business’ “Mornings With Maria,” Dimon pointed to recent volatility in the financial markets as a signal of deepening economic troubles.
“I think probably [a recession is] a likely outcome, because markets, I mean, when you see a 2,000-point decline [in the Dow Jones Industrial Average], it sort of feeds on itself, doesn’t it?” he said.
“It makes you feel like you’re losing money in your 401(k), you’re losing money in your pension. You’ve got to cut back.”
His comments came amid a sharp selloff in both equities and bonds early Wednesday.
Futures for major stock indexes fell sharply and Treasury yields jumped as investors weighed the implications of the latest retaliatory tariffs between Washington and Beijing.
Market sentiment soured further after China announced it would impose an 84% tariff on all US goods — a steep increase from previous levels — in response to newly enacted American tariffs.
As uncertainty continues to mount, analysts at JPMorgan have revised their outlook for the US economy — now predicting a 0.3% contraction in gross domestic product this year.
While relatively modest, the forecast represents a significant shift from previous expectations of continued expansion.
“Markets aren’t always right, but sometimes they are right,” Dimon said.
“I think this time they are right because they’re just pricing uncertainty [at] the macro level and uncertainty [at] the micro level, at the actual company level, and then how it affects consumer sentiment. It’s hard to tell.”
Dimon’s stance on tariffs has evolved.
Earlier this year, he downplayed concerns about trade disputes, urging critics to “get over it” and arguing that modest inflation was a worthwhile trade-off to protect national interests.
However, his latest remarks signal a more cautious tone as the economic fallout becomes harder to ignore.
Despite his concerns, Dimon still urged policymakers to adopt a steady and diplomatic approach to resolving trade tensions.
“Take a deep breath, negotiate some trade deals. That’s the best thing they can do,” he said.
“I’m taking a calm view. But I think it could get worse if we don’t make some progress here.”
The JPMorgan chief also threw his support behind Federal Reserve Governor Michelle Bowman, encouraging the Senate to confirm her as vice chair for supervision — the top regulatory post overseeing the US banking sector.
Bowman is scheduled to appear before lawmakers on Thursday for her confirmation hearing.
With markets on edge and recession chatter growing louder, Dimon’s remarks highlight the urgent need for clarity and cooperation in trade policy — and a steady hand in financial regulation.
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