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yesterday

Dimon flags domestic mismanagement as top threat to U.S. economy over China

He called for rapid government reforms to unlock 3 percent growth as deficits surge with persistent tariff pressure.

Jamie Dimon, chief executive officer of JPMorgan Chase & Co., during a Bloomberg Television interview on the sidelines of the JPMorgan China Summit in Shanghai, China, on Thursday, May 22, 2025. Dimon said he can't rule out the US economy will fall into stagflation as the country faces huge risks from both geopolitics, deficits and price pressures.
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Overview

  • At the Reagan National Economic Forum, Dimon said internal mismanagement across states, cities and pensions poses a more serious long-term threat to U.S. dominance than external rivals.
  • He highlighted that Trump-era tariffs have sharply curtailed U.S.-China trade and warned that China is unlikely to relent in the ongoing dispute.
  • With the 2024 federal deficit at roughly $2 trillion or 7 percent of GDP, Dimon cautioned that a recession could push it to 10 percent, fueling inflationary pressures.
  • Dimon reiterated concerns about potential U.S. stagflation, attributing risks to global fiscal deficits, defense spending and trade restructuring.
  • He called for immediate reforms to permitting, regulation, immigration, taxation, inner-city schools and healthcare to sustain annual growth of 3 percent.