In his annual letter to shareholders, JPMorgan Chase CEO Jamie Dimon highlighted concerns about stagflation and rising inflation, attributing these issues partly to Trump's trade policies. He noted that while inflation has decreased recently, factors such as high fiscal deficits, global remilitarization, and infrastructure needs might increase it again. Dimon described a "tug-of-war" concerning interest rate movements, indicating that prolonged low growth could lead to higher borrowing costs. He cautioned that the stock market may continue facing challenges, as equity valuations remain above historical averages.
"Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth," Dimon said in the 58-page letter, which addressed a range of topics from immigration to the state of civil discourse.
Dimon stopped short of saying the economy is headed for a recession. Following a two-day stock sell-off last week, the dreaded 'R' word has been on everyone's lips.
Collection
[
|
...
]