Jamie Dimon, the CEO of JPMorgan Chase, warned on Thursday that the possibility of a recession in the United States remains significant, despite recent concessions on tariffs with China.
“If there’s a recession, I don’t know how big it will be or how long it will last. Hopefully we’ll avoid it, but I wouldn’t take it off the table at this point,” Dimon stated during an interview with Bloomberg Television.
Dimon referred to the assessments made by his bank’s economists, who have indicated that the odds of a recession are close to even. Michael Feroli, JPMorgan’s chief U.S. economist, expressed in a client note earlier this week that while the recession outlook is “still elevated,” it is now projected to be below a 50% chance.
These remarks come just days after the U.S. and China announced a significant reduction in tariffs on each other’s goods for a duration of three months. Additionally, the U.S. has placed a 90-day hold on many tariffs affecting other countries.
Dimon’s latest comments reflect a shift from his stance last month, where he deemed a recession likely prior to the recent economic truce with China.
While he acknowledged ongoing “uncertainty” related to tariffs, Dimon characterized the pauses as beneficial for the economy and market dynamics. “I think the right thing to do is to back off some of that stuff and engage in conversation,” he noted.
Nevertheless, despite the suspension of certain tariffs, Dimon cautioned that import taxes on goods entering the United States remain significantly higher than they were a year ago, potentially inflicting economic harm. “Even at this level, you see people holding back on investment and thinking through what they want to do,” he remarked.
— Reporting contributed by Michael Bloom of Finance Newso.
