Jamie Dimon, CEO of the American investment bank JPMorgan Chase, said he does not rule out the possibility of the U.S. economy entering a state of stagflation, given the significant risks facing the country due to geopolitical tensions, budget deficits, and price pressures.
اضافة اعلان
In remarks to Bloomberg TV on the sidelines of JPMorgan’s Global China Summit held in Shanghai, Dimon stated:
"I don’t agree with the idea that we are in a perfect situation,"
pointing to a list of challenges the U.S. economy is facing, including the large fiscal deficit, inflationary factors, and geopolitical risks.
He affirmed that the decision by the U.S. Federal Reserve to wait for more economic data before deciding on interest rate cuts is absolutely appropriate.
The Federal Reserve has kept interest rates unchanged since the beginning of this year, amid a strong economic environment and uncertainty surrounding potential changes in government policies, such as tariffs and their possible impact on the economy. Earlier this month, Fed officials noted increasing signs of rising inflation and unemployment in the U.S. in the coming period.
Earlier this month, the United States and China agreed to sharply reduce tariffs for a 90-day period in an effort to reach a new trade deal, as part of a round of talks expected to be difficult between Washington and Beijing.
Analysts and investors expect the tariffs imposed by former President Donald Trump on China to remain at levels that will significantly reduce Chinese exports, even after the 90-day truce.
Dimon commented:
"I don’t think the U.S. government wants to pull out of China. I hope a second, third, or even fourth round of talks is held, and that things end well."
Trump’s erratic announcements about tariffs and his efforts to reduce or shut down federal agencies have raised concerns over trade, inflation, unemployment, and a potential economic recession.
On Monday, China called on the United States to adopt responsible policy measures to maintain the stability of the global financial and economic system and protect investor interests.
Bank executives also reported that companies have suspended expansion projects, including lucrative mergers and acquisitions managed by investment banks.
This week, JPMorgan Chase—the largest U.S. bank—launched its new Geopolitical Center, which conducts research on Russia, Ukraine, the Middle East, and global rearmament.
Dimon stated:
"This unit is for us, but also serves to educate our clients... Our clients constantly ask: What should we do about this country? How do you assess the risks?"
— dpa
