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3h ago

Jamie Dimon Warns of Stagflation Risk, Calls for Fiscal Responsibility

At JPMorgan's Global China Summit, Dimon endorsed the Fed's cautious approach while highlighting risks from deficits, inflation, and market complacency.

JPMorgan Chase CEO Jamie Dimon speaks during the Global Markets Conference in Paris, France, May 15, 2025. Michel Euler/Pool via REUTERS/File Photo
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Jamie Dimon, chief executive officer of JPMorgan Chase & Co., during a Bloomberg Television interview on the sidelines of the JPMorgan China Summit in Shanghai, China, on Thursday, May 22, 2025. Dimon said he can't rule out the US economy will fall into stagflation as the country faces huge risks from both geopolitics, deficits and price pressures. Photographer: Qilai Shen/Bloomberg via Getty Images
Jamie Dimon, chief executive officer of JPMorgan Chase, defended the FOMC's strategy given uncertainty in the economic outlook.

Overview

  • Jamie Dimon cautioned that stagflation remains a possibility for the U.S. economy, citing inflationary pressures from global deficits, trade restructuring, and remilitarization.
  • He supported the Federal Reserve's 'wait-and-see' strategy on interest rates, describing it as prudent given the economic uncertainties.
  • Dimon noted that President Trump's new tax bill could stabilize the economy in the short term but warned it would exacerbate the federal deficit.
  • Markets are underestimating risks from tariffs, deficits, and geopolitical tensions, according to Dimon, who criticized their 'extraordinary complacency.'
  • While acknowledging recent economic stability, Dimon stressed the need for responsible fiscal measures to address long-term challenges, including the ballooning national debt.