(Bloomberg) —<\/p>\n
Most Read from Bloomberg<\/p>\n
Jamie Dimon said he can\u2019t rule out the possibility of stagflation as the US grapples with huge risks from geopolitics, deficits and price pressures.<\/p>\n
\u201cI don\u2019t agree that we\u2019re in a sweet spot,\u201d the JPMorgan Chase & Co. chief executive officer said in a Bloomberg Television interview at the lender\u2019s Global China Summit in Shanghai. The US Federal Reserve is doing the right thing to wait and see before making changes to interest-rate policy, he said.<\/p>\n
Fed officials have held interest rates steady this year amid a solid economic backdrop and uncertainty about government policy changes \u2014 like tariffs \u2014 and their potential impact on the economy. Policymakers have said they see an increased risk of confronting both higher inflation and unemployment.<\/p>\n
Earlier this month, the US and China agreed to sharply reduce tariffs for 90 days to hammer out a new agreement, in what promises to be difficult rounds of talks between Washington and Beijing. US President Donald Trump\u2019s tariffs on China will likely remain at a level expected to severely curtail Chinese exports after the 90-day truce, analysts and investors say.<\/p>\n
\u201cI don\u2019t think the American government wants to leave China,\u201d Dimon said. \u201cI hope they have a second round, third round or fourth round and hopefully it will end up in a good place.\u201d<\/p>\n
Trump\u2019s chaotic tariff announcements and efforts to shrink or shutter government agencies have stoked concerns about trade, inflation, unemployment and a potential recession. Companies are pausing expansion, including lucrative mergers and acquisitions handled by Wall Street dealmakers, bank executives have said.<\/p>\n
Dimon\u2019s comments expand on remarks he made in recent interviews, when he warned against complacency and said recession remains a possibility, adding that many of the effects of the tariffs are yet to be seen. Volatility caused by the turmoil has continued to boost JPMorgan\u2019s stock-trading business, which notched record revenue in the first quarter.<\/p>\n
JPMorgan, the biggest US bank, also launched its \u201cCenter for Geopolitics\u201d this week with research on Russia and Ukraine, the Middle East and global rearmament.<\/p>\n
The unit \u201cis both for us, and it\u2019s also to educate clients,\u201d Dimon said. \u201cClients ask us all the time, What should we do about this country? How do you look at risk?\u201d<\/p>\n
Story Continues <\/p>\n
JPMorgan among others have indicated that the uncertainty from Trump\u2019s policies may cause clients to sit on the sidelines. Troy Rohrbaugh, co-CEO at JPMorgan\u2019s commercial and investment bank, said earlier this week that its investment-banking fees could fall by a percentage in the mid-teens compared to a year ago \u2014 more than analysts had predicted.<\/p>\n
Dimon said the US has to \u201cattack the deficit problems,\u201d and he also understands why investors may be cutting US dollar assets.<\/p>\n
On Wednesday night, House Republican leaders released a new version of Trump\u2019s massive tax and spending bill with a higher limit on the deduction for state and local taxes and other changes in a bid to win over warring GOP factions to support the legislation.<\/p>\n
US Treasuries on Wednesday extended their recent selloff, with longer-term securities getting hit the hardest and an auction of 20-year debt receiving a relatively tepid reception. The selloff at one point pushed the yield on the 30-year bond up by as much as 13 basis points to almost 5.10%, its highest level since 2023.<\/p>\n
\u201cI don\u2019t worry about short-term fluctuations in the dollar,\u201d Dimon said. \u201cBut I do understand people might be reducing dollar assets.\u201d<\/p>\n
–With assistance from Adrian Wong and Andy Clarke.<\/p>\n
(Adds Dimon\u2019s previous comments on trading, recession in the seventh paragraph.)<\/p>\n
Most Read from Bloomberg Businessweek<\/p>\n
\u00a92025 Bloomberg L.P.<\/p>\n","protected":false},"excerpt":{"rendered":"(Bloomberg) — Most Read from Bloomberg Jamie Dimon said he can\u2019t rule out the possibility of stagflation as…\n","protected":false},"author":2,"featured_media":122924,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3090],"tags":[3662,23638,51,1395,1700,3621,16,15,22684],"class_list":{"0":"post-122923","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-bloomberg","9":"tag-bloomberg-television","10":"tag-business","11":"tag-china","12":"tag-economy","13":"tag-jamie-dimon","14":"tag-uk","15":"tag-united-kingdom","16":"tag-us-federal-reserve"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114552330212005545","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/122923","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=122923"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/122923\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/122924"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=122923"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=122923"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=122923"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}