JPMorgan Chase & Co. CEO Jamie Dimon on Friday sounded a recession warning once more, attributing it to Donald Trump’s tariff transfer.
As per a report by Reuters, the JPMorgan CEO mentioned odds of recession within the US are at 50 per cent.
Saying the primary quarter outcomes of the funding banking agency, Jamie Dimon remained circumspect on the economic system as company America navigated the fallout of President Donald Trump’s tariffs. Over the previous week, the Trump tariffs have have raised inflationary dangers and fears of recession.
“Purchasers have grow to be extra cautious amid a rise in market volatility pushed by geopolitical and trade-related tensions,” Dimon mentioned, including, “The economic system is dealing with appreciable turbulence, together with geopolitics.”
Recession a ‘doubtless final result’: Jamie Dimon
Earlier, the JPMorgan Chase CEO additionally instructed Fox Business about his recession worries.
“I hear it from simply all people now, ‘I will in the reduction of just a little bit, I am gonna wait, see what occurs.’ That’s sort of recessionary discuss,” he mentioned in an interview.
When requested about his private opinion on the matter, Dimon mentioned recession is a ‘doubtless final result’.
“I’m going to defer to my economists at this level, however I feel most likely that is (recession) a possible final result,” he mentioned.
Jamie Dimon’s letter to shareholders
Earlier this week, Jamie Dimon had warned of a recession within the US in his letter to shareholders.
“The current tariffs will doubtless enhance inflation and are inflicting many to think about a higher likelihood of a recession,” he mentioned.
The CEO additionally flagged that there was an ongoing financial turbulence attributable to these elements.
“The economic system is dealing with appreciable turbulence (together with geopolitics), with the potential positives of tax reform and deregulation and the potential negatives of tariffs and “commerce wars,” ongoing sticky inflation, excessive fiscal deficits and nonetheless relatively excessive asset costs and volatility,” he mentioned.
He additional warned about short-term results of the tariffs introduced by Donald Trump.
“As for the short-term, we are prone to see inflationary outcomes, not solely on imported items however on home costs, as enter prices rise and demand will increase on home merchandise. How this performs out on totally different merchandise will partially depend upon their substitutability and worth elasticity,” he mentioned.
“The economic system is dealing with appreciable turbulence (together with geopolitics), with the potential positives of tax reform and deregulation and the potential negatives of tariffs and “commerce wars,” ongoing sticky inflation, excessive fiscal deficits and nonetheless relatively excessive asset costs and volatility,” he mentioned.
He additional warned about short-term results of the tariffs introduced by Donald Trump.
“As for the short-term, we are prone to see inflationary outcomes, not solely on imported items however on home costs, as enter prices rise and demand will increase on home merchandise. How this performs out on totally different merchandise will partially depend upon their substitutability and worth elasticity,” he mentioned.
The Donald Trump administration final week unveiled steep reciprocal tariffs on dozens of nations, solely to pause a lot of them on Wednesday. Because the tariffs had been first introduced, international markets have seen extreme massacre however largely recovered on the announcement of the pause.
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