In This Story
JPMorgan Chase (JPM+4.84%) CEO Jamie Dimon warned that the U.S. economy faces “considerable turbulence” as it deals with a chaotic stock market and a looming trade war as a result of President Donald Trump’s erratic tariff policy.
“The economy is facing considerable turbulence (including geopolitics), with the potential positives of tax reform and deregulation and the potential negatives of tariffs and ‘trade wars,’ ongoing sticky inflation, high fiscal deficits and still rather high asset prices and volatility,” Dimon wrote in Friday morning’s quarterly earnings release.
Dimon has been vocal recently about the state of the U.S. economy.
Some believe it was his Wednesday comments on Fox Business (FOXA-1.11%)’ “Mornings with Maria” — during which he said the potential of a recession was a “likely outcome” amid the “Liberation Day” tariff policies — that prompted the president to make a 180-degree turn on the duties. And Monday, the JPMorgan Chase CEO warned in his annual letter to shareholders that Trump’s trade policy would “likely increase inflation” and slow down growth.
Now, the economy remains in tumult as a result of uncertainty about Trump’s ever-changing tariff policy.
The markets had a historic day Wednesday after Trump announced a 90-day pause on most reciprocal tariffs but came back down to Earth after the markets reckoned with the facts that reciprocal (and heavy) tariffs on China remain, the blanket 10% levy on all trading partners is still in place, and imported cars will still face a 25% duty.
In Friday’s premarket news, JPMorgan Chase was part of a group of big-name financial institutions that posted better-than-expected first-quarter results. The financial firm reported first-quarter earnings of $5.07 per share on revenue of $46.01 billion, topping analyst expectations as profit rose 9% to $14.64 billion.
Excluding a one-time gain from its First Republic acquisition, adjusted EPS came in at $4.91, still beating estimates, with strong performance in trading, investment banking, and asset management driving the upside. Shares climbed over 1% in early trading, but sank into the red as the bell neared.
–Catherine Baab contributed to this article.