Jamie DimonCEO of JP Morgan Chaseone of the world’s largest banks, launched a warning on the economic course of the United States: in statements from Shanghai, he warned about the growing risk of stagflationa phenomenon that combines High inflation with economic stagnation and unemployment increase.
In a dialogue with Bloomberg TV during the Global China Summit organized by the financial entity, Dimon said that the current scenario is not the ideal and that the macroeconomic imbalances, added to the political movements of the Government of Donald Trump, They could aggravate uncertainty.
“We are not at an ideal time”
According to Dimon, The Federal Reserve You are taking the right path by maintaining a “wait and see” posture before modifying interest rates. With still high inflation and global tensions, the banker believes that the organism should not hurry its monetary policy.
However, he warned that Fiscal and Commercial Policy It could end up complicating the panorama even more. Especially, he pointed against The erratic tariffs driven by Trump and its initiatives to reduce or directly close government agencies, which generates fear between investors and entrepreneurs.
Chinese tension and risk for global trade
One of the foci of concern is the relationship with Chinaafter a brief 90 -day commercial truce to renegotiate tariffs. Although Dimon expressed his hope that agreements will be achieved in future rounds, he acknowledged that Current levels of Chinese export restrictions will continue to affect international trade.
“The White House does not want to isolate itself from China, but the signals are contradictory,” he said.
Geopolitical uncertainty also led JP Morgan to Create a new “Geopolitics Center”a specialized unit that will analyze risks associated with conflicts such as those of Ukraine, the Middle East and the growing global military tension.
Investments in pause and fall in income
Dimon also recognized that Political volatility is affecting financial businessessince many companies are delaying mergers, acquisitions and expansion plans for fear of economic course.
According to Troy Rohrbaughco -director of commercial banking and investment of the bank, the income of the area could Double digit compared to 2024exceeding the most negative forecasts in the market.
Finally, JP Morgan’s CEO warned about the sustainability of US fiscal deficit and understood investors to reduce their exposure to dollar assets. “We have to attack structural problems if we don’t want to face more serious consequences,” he concluded.
Source: Ambito
