JPMorgan Chase CEO Jamie Dimon Warns of Economic Pain From Trump’s Tariffs
The wave of rates of President Trump threatens to bring both short -term economic pain, including lower growth and long -term damage to American permanent and commercial relationships all over the world, the managing director of the largest Wall Street bank warned on Monday.
“Recent rates will probably increase inflation and are making sure that many consider a greater probability of recession,” wrote Jamie Dimon, managing director of JpMorgan Chase, in his annual letter to shareholders.
The warning of Mr. Dimon, one of the most influential leaders of Wall Street, echoes the growing anxiety among the company leaders on how the rates will take place. Even those who initially professed support for Mr. Trump’s commercial plans are becoming more and more worried about the consequences.
Even before the tariff announcement of Mr. Trump last week, the American economy had shown signs of tension after years of greeting performance, wrote Dimon. Inflation was already a concern, Dimon said, indicating a yawned tax deficit and the need for greater infrastructure expenditure. And the assessments of the shares remain well above the historical averages,-even after the recent Sell-Off on the market.
The potential consequences of the commercial struggle could worsen things, said the letter. These include the efforts of other countries to fight-like made China by imposing 34 % of counter-lips-and a possible erosion of trust between consumers and investors. Dimon also felt the fulfillment of the role of the American dollar as a global reserve currency.
“If America, for any reason, becomes a less attractive destination of investment, the US dollar and the economy could suffer if foreigners sold their US assets,” he wrote.
JPMORGAN economists have increasingly stated that a recession is more likely this year, although Mr. Dimon has not personally taken a position on these chances in his shareholder letter.
While Mr. Dimon said that JPMorgan himself was strong enough to resist the shocks that the samples have placed – his traders took profit from the previous Whipsaw in the markets – the global economy may not be so lucky. “It is not particularly good for the capital markets,” said Dimon of volatility linked to rates.
For now, Mr. Dimon wrote that he hoped in a rapid resolution to commercial battles. “Fasically this problem is solved, better because some of the negative effects increase cumulatively over time and would be difficult to reverse,” he wrote.
The longer term concern, said Dimon, is that the struggle of Mr. Trump could destroy the decades of alliances that have consolidated the primacy of the United States in the global order. The head JPMorgan wrote that he was worried that American commercial partners could seek agreements with the likes of the caliber of China, Iran or Russia in response to rates.
“The America First is fine,” wrote Mr. Dimon, referring to the description of Mr. Trump of his policies, “as long as he does not end up being America alone”.
