JPMorgan Chase CEO Jamie Dimon has warned that US economy could soon “deteriorate”. While speaking at a Morgan Stanley conference on Tuesday, Dimon said that the effects of government spending and money policies used during the pandemic to support the US economy have worn off. And because of this, the country could face an economic slowdown in the coming months.
“I think there’s a chance real numbers will deteriorate soon,” Dimon said.
The US economy has seen more jobs and steady consumer spending. However, surveys show that both consumers and business leaders are starting to feel less confident, likely due to the Trump administration’s tariff policies, a CNBC report said.
Citing these survey results, Dimon said that these aren’t always good at predicting turning points in the economy. Still, he warned that what’s being called a “soft landing” could end up looking weaker than expected.
Dimon’s prediction for employment and inflation
Dimon said job numbers might drop slightly, and inflation could rise a bit. He also pointed out that reduced immigration could make things more difficult for the US economy.
Dimon has led JPMorgan since 2006 and is known for giving cautious views on the economy. His recent comments weren’t unusually negative. Latest data for May showed that both job growth and inflation had slowed.
He also raised concerns about the private credit market, which has become a fast-growing part of Wall Street. He said that in a recession, this could become a risky area. Dimon explained that banks usually arrange private credit deals and then pass them on, while investors hold onto them hoping for long-term returns.
As for current investment opportunities, Dimon said if he were a fund manager, he wouldn’t be buying credit right now because prices and returns aren’t attractive.