The U.S. Economy Will Soon ‘Deteriorate,’ Says JPMorgan (JPM) CEO Jamie Dimon

JPMorgan Chase (JPM) CEO Jamie Dimon is warning investors that the U.S. economy is likely to soon deteriorate as the full impacts of tariffs and trade wars take hold.

The leader of the world’s largest commercial bank also warns that the government stimulus and monetary policy supports that helped the U.S. economy through the Covid-19 pandemic have now faded, leaving America’s economy in a vulnerable position.

“I think there’s a chance real numbers will deteriorate soon,” said Dimon at a conference. “Employment will come down a little bit. Inflation will go up a little bit. Hopefully, it’s just a little bit,” he added, noting that lower levels of immigration are another complicating factor for the U.S. economy.

So Far, So Good

Dimon’s grim outlook comes despite the fact that the U.S. economy has continued to post decent growth, including strong employment numbers, robust consumer spending, and tepid inflation. The JPMorgan CEO noted that most economic data is backward looking and said he expects the numbers to turn gloomier in coming months as tariff impacts become clearer.

Dimon, who has been CEO of JPMorgan since 2006, is known for being cautious, some analysts say “negative,” in his outlooks on the U.S. economy. Dimon recently issued a dire warning about the bond market and U.S. debt and deficit levels, which he has said are unsustainable. JPM stock has gained 13% this year.

Is JPM Stock a Buy?

The stock of JPMorgan Chase has a consensus Moderate Buy rating among 21 Wall Street analysts. That rating is based on 14 Buy and seven Hold recommendations issued in the last three months. The average JPM price target of $278.40 implies 4.37% upside from current levels.

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