Concerns Over Economic Decline

Dimon expressed concerns that the U.S. economy might be heading into a recession, exacerbated by the ongoing trade war initiated by President Donald Trump’s tariffs. He noted that recent fluctuations in the stock market, including a substantial drop in the Dow Jones Industrial Average, could contribute to a self-perpetuating cycle of economic worry.

“I think probably [a recession is] a likely outcome, because markets… it sort of feeds on itself, doesn’t it?” Dimon stated during an interview on Fox Business. “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.”

Impact of Tariffs and Market Reactions

Recent developments in U.S.-China relations prompted heightened fears in the financial markets. Following China’s announcement of an 84% tariff on all U.S. goods—an increase from the previous rate—investors reacted swiftly, leading to a sharp decline in stock futures and a notable increase in bond yields. Dimon emphasized that uncertainty in trade negotiations is affecting both macroeconomic factors and consumer sentiment.

Economic Predictions

Economists at JPMorgan forecast a mild recession, projecting a contraction of 0.3% in U.S. gross domestic product (GDP) for the year. This prediction comes on the heels of a robust growth period, signaling a potential downturn amidst ongoing economic fluctuations.

The Case for Negotiation

In his remarks, Dimon urged U.S. policymakers to engage in negotiations with trade partners to stabilize economic conditions. “Take a deep breath, negotiate some trade deals. That’s the best thing they can do,” he advised, cautioning that without progress, market conditions could worsen.

Support for Regulatory Appointments

Dimon also addressed regulatory matters, advocating for the Senate’s confirmation of Fed Governor Michelle Bowman as vice chair for supervision, a critical role in overseeing the banking and finance sectors.