Jamie Dimon Warns Of Stagflation Risk, Says He Isn’t Worried About Dollar’s Recent Weakness

JPMorgan Chase CEO Jamie Dimon warned on Thursday that the U.S. economy could potentially witness stagflation due to risks stemming from geopolitical concerns, fiscal deficits, and more.

“I don’t agree that we’re in a sweet spot,” Dimon told Bloomberg in an interview on the sidelines of JPMorgan’s Global China Summit in Shanghai.

The veteran banker also underlined that the Federal Reserve’s rate policy and stance are in the right direction, and Chair Jerome Powell’s wait-and-watch approach is correct.

Powell had previously reiterated that the Trump administration’s tariffs were larger than expected, and that he would prefer to wait to see the full impact of these policies on the economy and inflation before venturing into another rate cut.

This was despite pressure from President Donald Trump, who stepped up his attacks against the Fed Chair, calling him a “major loser” in April.

Dimon said that although the U.S. and China are engaged in a tariff war, the United States wouldn't exit the Chinese market.

Reacting to the 90-day tariff pause between the U.S. and China, the JPMorgan CEO said he would like further rounds of talks between the two countries.

As for the concerns around the weakness of the U.S. dollar, Dimon said he’s not worried.

“I don’t worry about short-term fluctuations in the dollar. But I do understand people might be reducing dollar assets,” he said.

Dimon has been warning about risks to the economy from President Donald Trump’s tariff policies. While he stopped short of predicting a recession, he expressed concerns that the U.S. economy could witness a growth slowdown.

Meanwhile, the SPDR SPY 500 ETF (SPY), which represents the S&P 500 index, was marginally up by 0.05% at the time of writing.

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