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JPMorgan Chase (JPM) CEO Jamie Dimon now thinks a recession is probably coming, thanks to President Trump’s tariff policy.
Speaking to Fox Business’s Maria Bartiromo about the potential of a recession, Dimon said, “I am going to defer to my economists at this point, but I think probably. That’s a likely outcome.”
Dimon did caution that “markets aren’t always right, but sometimes they are right.” He thinks they’re right this time because the markets are “pricing uncertainty” at macro and micro levels.
“If companies start cutting back, consumer spending changes and business sentiment changes,” Dimon said. “Nobody is wishing for that, but hopefully, if there is [a recession,] it will be short.”
“Fixing these tariff issues and trade issues would be a good thing to do. That would get one major uncertainty behind us,” he said. “We have the strongest economy in the world. It would be good not to add to the uncertainty out there.”
Dimon already sounded the alarm on Trump’s tariffs in his annual letter to shareholders on Monday, warning that the trade policy will likely spike inflation and is sure to slow down growth.
The longtime JPMorgan CEO explained he started writing the letter amid a weakening U.S. economy, adding “that was before the recent tariff announcement.”
He told shareholders to not only expect rising prices on imported and domestic goods but to prepare for a bevy of uncertainty. He cited “the potential retaliatory actions, including on services by other countries, the effect on confidence, the impact on investments and capital flows, the effect on corporate profits, and the possible effect on the U.S. dollar.”