- Jamie Dimon, CEO of JPMorgan, warned The fact that the economic incentive of the pandemic has conducted its course, which prevents consumers with low savings and concerns that inflation could increase while employment falls and a challenge for the double reserve’s twice mandate.
For months the chairman of the Federal Reserve, Jerome Powell, has been nervous that the two sides of the Federal Open Market Committee (FOMC) of the Federal Market (FOMC) The dual mandate will end in opposition.
Now JPMorgan CEO Jamie Dimon has suggested that he is right: The veteran of Wall Street sees in inflation and the employment rates decrease, headache for the FOMC chairman.
Dimon suggested that the time was brewed for time instead of being symptomatic of the latest volatility in economic and foreign policy politics.
What drives the fears of the billionaire banker is that the pumps that reinforce the economy during pandemic have finally run dry and consumers are likely to pay the price.
So far, Wall Street Giants have been pleasantly surprised by the robust health of consumersWhat prevented the economy from putting in a hard landing and recession.
But it seems The mood is “ok”, Explain: “So the consumer had money, wages are pretty good, unemployment is pretty good, they out!
“At the top of the upper end, the consumer still travels and spends some money, their work is there. Your real estate prices are far high, your share prices are far high, it looks pretty good.”
Dimon also noticed that the feeling has fluctuated since Trump’s office. According to the consumer mood of the University of Michigan, the index fell from 71.7, for example, to 52.2 to April in January 2025, but has stabilized since then.
The stock market fluctuated in a similar way and billions of the net of the richest people in the world extinguished before rising again. The S&P 500 is, for example 2.6% For the previous year at the time of writing.
“The company side is the same,” Dimon continued after a recording of Assets. “The feelings have dropped, the feelings come up again, but the business is still okay.
“But the buttons are real, I’m not trying to be negative. We have spent $ 10 trillion. Of course, consumers have more money, we have given them. Of course, companies are better, the consumers have spent the $ 10 trillion – which goes directly through P&L in every industry.
“And then we had Qe … and the true reversal is just beginning.”
The 10 -Billion -Dollar number of Dimon refers to the global expenditure governments undertakes to increase their economies during pandemic.
He added: “Then you have all of these really complex, tectonic plates in terms of trade, economy, geopolitics and future factors that in my opinion are inflationary: military, restructuring of trade, continuing tax deficits, so it is okay.
“If you are looking for this turning point … you will not tell you that you see real numbers and I think there is a probability that real numbers will worsen. Employment will decrease a little, inflation will rise a little – hopefight is just a bit.”
Take care of the “big ones”
Dimon added that he would not worry about minor fluctuations in metrics such as inflation and employment rate, but would focus more on broader problems (as he calls them, the “great”) such as geopolitics, trading partnerships and the militarization of the world.
This will not be a surprise for those who have eagerly read Dimon’s shareholders in recent years.
In his last letterFor example, he warned the White House against pushing away the most important allies too far: “It is important to keep our alliances both militarily and economically together. The opposite is exactly what our opponents want.”
“This will be difficult, but the goal of our country should be to make the European nations stronger and keep them closely. If the economic weakness of Europe leads to fragmentation, the landscape before World War II will look very similar.”
He added: “The economy is the long -term glue, and America is okay at first as long as it is not only America.”
This story was originally on Fortune.com
