Unleash Prosperity senior fellow EJ Antoni analyzes the Republican tax invoice and the state of the U.S. economic system on Varney & Co.
JPMorgan Chase CEO Jamie Dimon on Thursday warned {that a} potential recession may nonetheless happen as turmoil from the Trump administration’s tariffs weighs on the economic system.
Dimon attended the agency’s annual World Markets Convention and mentioned in a Bloomberg Tv interview that he is hopeful the economic system will dodge a recession, however that it stays a attainable final result.
“Hopefully we’ll avoid it, but I wouldn’t take it off the table at this point,” Dimon mentioned. “If there is a recession, I don’t know how big it would be or how long it would last.”
Dimon’s remarks come after JPMorgan economists lowered their estimate of the chance of a recession from 60% previous to the non permanent discount in tariffs on China, to beneath 50% following the pause. Dimon himself warned final month earlier than the pause that recession was “a likely outcome” for the U.S. economic system.
JPMORGAN LOWERS RECESSION PROBABILITY AFTER TRUMP’S TARIFF TRUCE WITH CHINA
JPMorgan Chase CEO Jamie Dimon mentioned he nonetheless sees the opportunity of the U.S. economic system getting into a recession. (Al Drago/Bloomberg by way of Getty Photos / Getty Photos)
Dimon mentioned that the uncertainty created by tariffs has triggered among the agency’s purchasers to carry off on investments as volatility continues.
Markets have rallied after the Trump administration and the Chinese language authorities agreed to quickly decrease the tariffs from 145% on Chinese language items and 125% on U.S. exports to 30% and 20%, respectively, as negotiations proceed over a long-term deal.
“I think it’s the right thing to do – is to back off of some of that stuff,” Dimon mentioned of the tariff pause for negotiations, including that the 2 sides ought to “have an engaging conversation.”
BIG BANK CEOS WEIGH IN ON TRUMP’S TARIFFS: ‘CONSIDERABLE TURBULENCE’
Tariffs are taxes on imports which can be paid by importers, who usually go the upper prices on to customers by greater costs. (Qian Weizhong/VCG by way of Getty Photos / Getty Photos)
He advised the outlet that the tariffs have raised the potential for a decline in investments within the U.S., saying, “There’ll be a little of that. We irritate a lot of people. I run into them, they say you know, they’re not buying our Kentucky bourbon.”
Regardless of the uncertainty and tensions created by the tariffs, Dimon mentioned that the U.S. remains to be the perfect place to speculate.
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“Is America a bad investment destination? No. If you were to take all your money and put it in one country it would still be America,” he mentioned.
