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3mo ago

Jamie Dimon Warns of Stagflation Risks as Trump’s Tax Bill Advances

The JPMorgan CEO highlights inflationary pressures from deficits, trade issues, and geopolitical tensions, while backing the Federal Reserve’s cautious monetary policy stance.

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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. Photographer: Qilai Shen/Bloomberg via Getty Images
Jamie Dimon, chief executive officer of JPMorgan Chase, defended the FOMC's strategy given uncertainty in the economic outlook.

Overview

  • Jamie Dimon cautions that the U.S. faces a credible risk of stagflation, driven by persistent inflation, stagnant growth, and rising deficits.
  • The Congressional Budget Office estimates that Trump’s tax and spending bill, which passed the House, will add $3.8 trillion to the national debt over the next decade.
  • Dimon supports the Federal Reserve’s ‘wait-and-see’ approach to interest rates, emphasizing the need to respond to evolving economic conditions.
  • Moody’s recently downgraded the U.S. credit rating, citing concerns over the country’s ballooning debt and fiscal sustainability.
  • Dimon warns of market complacency regarding risks from tariffs, fiscal deficits, and geopolitical uncertainties, urging more proactive fiscal responsibility.