According to Jamie Dimon, CEO of JPMorgan Chase, the impact of spending and monetary policy from the Pandemic Ella government, which helps support the US economy, is declining, making the country vulnerable to recession for the coming months.
“I think the real numbers could get worse soon,” Dimon said at the Morgan Stanley Conference on Tuesday.
The US continues to grow in total employment and consumer spending this year, despite research data showing that it weakens the credibility of consumers and business leaders in the face of Trump administration’s tariff policies.
Dimon downplayed the survey data and said “neither consumers nor businesses choose inflection points,” but said the “soft landing” in the economy is likely to appear weaker in the future.
“Employment will be a little lower. Inflation will rise a little. Hopefully, that’s just a little,” he said, adding that the low level of immigration is another complexity for the factor.
Dimon, who has been CEO of JPMorgan since 2006, has a history of sharing prudent or negative outlooks about the economy. His comments on Tuesday were not unusually pessimistic.
Latest economic data shows that both job growth and inflation slowed down in May.
Another area Dimon warned was private trust. This has become a booming business on Wall Street and is considered a potential area of concern in the event of a recession. The CEO explained that private credit risk differs for banks (since lined up in a transaction and then moving out of books) and investors looking for long-term returns from asset classes.
“If I were a fund manager, do you think this is a good time to buy credits? No. I don’t buy credits today at these prices and these spreads,” Dimon said.