Jamie Dimon, chief executive of JP Morgan Chase, has warned that the United States faces a 50 per cent chance of recession, citing the fallout from President Trump’s sweeping trade tariffs and a growing mix of economic headwinds.
Speaking as markets continue to reel from the uncertainty triggered by the new tariff regime, Dimon said the world’s largest economy faces “considerable turbulence”. He pointed to stubborn inflation, high fiscal deficits, elevated asset prices and continued market volatility as compounding the risks.
“As always, we hope for the best but prepare the firm for a wide range of scenarios,” Dimon said, underlining his concern about the direction of the US economy.
His comments came as John Williams, head of the Federal Reserve Bank of New York, also warned that the new tariffs could drive US inflation up to 4 per cent this year, pushing unemployment higher and cutting economic growth in 2025 to below 1 per cent.
Dimon said he had already observed major companies pulling back on hiring, delaying mergers and acquisitions, and preparing to withdraw forward earnings guidance as the full impact of Trump’s tariff policy remains unclear.
Support authors and subscribe to content
This is premium stuff. Subscribe to read the entire article.
