Jpmorgan chase CEO Jamie Dimon he said Monday is Tariffs Announced by the president Donald Trump Last week, they will probably raise the prices of both domestic and imported goods, charging the American economy, which has already slowed down.
Dimon, 69, turned to Tariff policy Trump announced on April 2 in his annual shareholder letter, which became a strictly read accusation of the state of the economy, suggestions for the problems faced by the US and its effective management.
“Whatever you think about the justified reasons for newly announced tariffs, of course, there are some long-term effect, good or bad, there will probably be significant short-term effects,” said Dimon. “We will probably see inflation results, not only for imported goods, but also domestic prices, because the increase in expenditure costs and increasing demand for domestic products.”
“Regardless of whether the tariff menu causes a recession, it remains undermining, but will slow down the growth,” he said.
Dimon is the first general director of the large Wall Street bank, which publicly dealt with the extensive Trump's tariff policy at the time of global markets.
Although the president of JPMorgan often used his platform to emphasize the geopolitical and financial risk that he sees, this year's letter takes place at an extremely turbulent time. The actions were free from the time when Trump's announcement shocked global markets, causing the worst week American actions From the explosion of Covid pandemic in 2020.
His remarks seem to withdraw earlier comments, which he wrote in January, when Dimon said that people should “get over“Tariff fears because they were good for national security. At that time, the tariff levels discussed were much lower than last week.
Dimon said that Trump's tariff policy created “a lot of uncertainty”, including influence on global capital flows and dollar, impact on corporate profits and the reaction of trading partners.
“The sooner this problem is solved, the better, because some negative effects increase over time and it would be difficult to turn around,” he said. “In a short period I see it as one big additional straw on the back of a camel.”
“I'm not sure”
While the American economy has achieved good results over the past few years, helping almost $ 11 trillion dollars of government loans and expenditure, in recent weeks “already weakened”, even before Trump's tariff announcement, according to Dimon. He added that inflation will probably be more and more expected, which means that interest rates may remain increased, even when the economy slows down.
“The economy is in the face of significant turbulence (including geopolitics), with the potential positives of reform and tax deregulation, as well as potential negative negative tariffs and” commercial wars “, continuous sticky inflation, high fiscal deficits, and rather high prices of assets and variability,” said Dimon.
The General Director of JPMorgan has been cautious since at least 2022, when he said “Hurricane“He was guided by the American economy, thanks to the relaxation of the federal reserve policy and the war to Ukraine. But based on high government and consumer expenses, the US economy has so far opposed the expectations. Asset In November, it initially increased the hopes around what the pro-proximation administration would do.
Dimon threw himself on Monday a slightly sinister note, considering how many reserves in the US have already dropped from their recent ups. According to JPMorgan CEO, both reserves and credit spots were still potentially too optimistic.
“Markets still seem to value assets with the assumption that we will continue to have a fairly soft landing,” said Dimon. “I'm not so sure.”
“Critical intersection”
Under about two decades of the leadership of Dimon JPmorgan, he became the largest American bank according to assets and market capitalization. He noticed that last year he was seventh of record revenues.
But the bank is based on “whether America's long-term health, in the country and the future of the free and democratic world are strong,” said Dimon. He said that both the US and the world are at a “critical crossroads”.
While the word “Trump” did not appear once in its 59-page letter, Dimon confirmed several priorities of the president, including immigration; Addressing commercial imbalances, especially with China; and deregulation.
But Dimon argued for a deep reform and strengthening of the global system, which led to the decades of peace and prosperity, run by America since the end of World War II, and not abandoning this order.
“If he receives such an opportunity, this is what our opponents want to happen: tear extensive military and economic alliances that America and its allies falsified,” said Dimon.
“In the next multiply world, it will be every nation for themselves – giving our opponents the opportunity to establish the rules and use military and economic coercion to get what they want.”
Dimon had several prescriptions to meet the challenges of the day, including restoring civic pride, recognition and solving problems, including immigration and dishonest commercial policy of common sense, and maintaining the American army “for any costs”.
“Economics is a long -term glue, and America is fine,” said Dimon, “as long as she is not alone in America.”
