Jamie Dimon Discusses Recession Risks and Tariff Changes

Jamie Dimon, CEO of JPMorgan Chase & Co., expressed concerns regarding the potential for a recession in the United States during a recent interview on Bloomberg Television. Dimon emphasized that, despite recent improvements in trade relations, economic uncertainty remains prevalent.

Recession Outlook

In his remarks, Dimon stated, “If there’s a recession, I don’t know how big it will be or how long it will last. Hopefully we’ll avoid it, but I wouldn’t take it off the table at this point.” This cautious sentiment reflects the view of JPMorgan’s economists, who currently assess the likelihood of a recession as nearly even. Michael Feroli, the firm’s chief economist, noted that their models indicate recession odds are “still elevated, but now below 50%.”

Impact of Tariff Adjustments

Dimon’s comments come shortly after the U.S. and China announced significant reductions in tariffs for a duration of 90 days. Additionally, the U.S. has implemented similar pauses on tariffs affecting various countries. While Dimon acknowledged these steps as positive developments, he remarked, “Even with the tariff pauses, the import taxes on goods entering the United States are now sharply higher than they were last year,” indicating ongoing economic pressure.

Investment Concerns

Despite the recent tariff adjustments, Dimon noted that businesses are still hesitant regarding investments. “Even at this level, you see people holding back on investment and thinking through what they want to do,” he said, highlighting the caution prevailing among corporations in light of economic uncertainties.

Conclusion

While Dimon’s tone has shifted from earlier predictions of a likely recession to a more guarded perspective following tariff negotiations, he maintains that the economic landscape remains fraught with challenges. The ongoing tariffs continue to impose higher costs and may inhibit growth.

Reporting by Michael Bloom of CNBC contributed to this article.