Jamie Dimon says Trump's prices will increase inflation, slows down the American economy

The CEO of JPMorgan Chase, Jamie Dimon, said on Monday that the prices announced by President Donald Trump would probably increase prices on national and imported goods, weighing an American economy that had already slowed down.

Dimon, 69, addressed the pricing policy that Trump announced on April 2 in his annual shareholder letter, which has become a closely read screed on the state of the economy, proposals for problems in the United States and its point of view on effective management.

“Whatever you think of the legitimate reasons for the newly announced prices and, of course, there is a long -term effect, there are probably significant short -term effects,” Dimon said. “We are likely to see the inflationary results, not only on imported products but on internal prices, as input costs increase and increase interior products.”

“Whether the price menu causes or not a recession remains in question, but that will slow growth,” he said.

Dimon is the first CEO of a large bank of Wall Street to publicly approach Trump's pricing policy as global markets fall.

Although the president of JPMorgan has often used his platform to highlight the geopolitical and financial risks he sees, this year's letter arrives at an unusually turbulent moment. The shares have been down free since Trump's announcement have shocked the world markets, causing the worst week for American actions since the pandemic cocted in 2020.

His remarks seem to go back the previous comments he made in January, when Dimon said that people should “recover” pricing concerns because they were good for national security. At the time, the tariff levels discussed were much lower than what was revealed last week.

Trump's pricing policy has created “many uncertainties”, including its effect on world capital flows and the dollar, the impact on business profits and the response of trading partners, said Dimon.

“The more quickly, this problem is solved, the better because some of the negative effects increase cumulatively over time and would be difficult to reverse,” he said. “In the short term, I see it as a large additional straw on the back of the camel.”

'Not so sure'

Although the US economy has performed well in recent years, helped by nearly 11 billions of dollars in government loans and expenses, it “was already weakening” in recent weeks, even before the announcement of Trump's price, according to Dimon. Inflation is likely to be more sticky than many does not provide, which means that interest rates could remain high even if the economy slows down, he added.

“The economy is confronted with considerable turbulence (including geopolitics), with the potential positives of tax reform and deregulation and potential negatives of prices and” trade wars “, continuous sticky inflation, high tax deficits and still fairly highly high prices and volatility,” said Dimon.

The CEO of JPMorgan has learned a note of caution since at least 2022, when he declared that a “hurricane” was heading for the American economy, thanks to the course of the policies of the federal reserve and the Ukrainian war. But supported by high spending by government and consumers, the US economy has challenged expectations so far. The election of Trumpin November initially stimulated hopes for a pro-growth administration.

Dimon struck a somewhat disturbing note in his letter on Monday, given the amount of American stocks already fallen from their recent summits. According to the CEO, the actions and credit differences were still potentially too optimistic.

“The markets always seem to be pricing assets assuming that we will continue to have a fairly soft landing,” said Dimon. “I'm not so sure.”

“Critical cross-chemins”

Under two decades of Dimon leadership, JPMorgan has become the largest American bank by assets and market capitalization. Last year was his seventh consequence of record income, he noted.

But the bank depends “on the question of whether the long -term health of America, at the national level and the future of the free and democratic world, is strong,” said Dimon. The United States and the world are at a “critical crossroads,” he said.

Although the word “Trump” did not appear once in his 59 -page letter, Dimon affirmed several of the president's priorities, including immigration; attack commercial imbalances, in particular with China; and deregulation.

But Dimon pleaded for a deep reform and a strengthening of a global system which has led to decades of peace and prosperity, led by America since the end of the Second World War, rather than abandoning this order.

“If we give the opportunity, this is exactly what our opponents want to happen: tear the vast military and economic alliances that America and its allies have forged,” said Dimon.

“In the multipolar world that follows, it will be each nation for itself giving our opponents the possibility of defining the rules and using military and economic coercion to obtain what they want.”

Dimon had several orders to meet the challenges of the day, including the restoration of civic pride, recognition and problem solving, in particular immigration and unfair trade policies with common sense, and the maintenance of the American army “at all costs”.

“The economy is longtime glue, and America is first of all well,” said Dimon, “as long as it ends up being America alone.”

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