Jamie Dimon, CEO of JP Morgan Chase, warned of a 50% chance of recession in the US, attributing this to Trump's trade tariffs and various economic challenges. He noted issues such as inflation, high deficits, and market volatility as exacerbating risks. Additionally, concerns about rising unemployment and slowed economic growth were voiced by John Williams of the Federal Reserve. JP Morgan has increased its reserve for bad debts significantly, reflecting their caution in an uncertain economic landscape, although Dimon stressed that analysts at the bank have the freedom to express their views without pressure.
"As always, we hope for the best but prepare the firm for a wide range of scenarios," Dimon said, underlining his concern about the direction of the US economy.
Dimon pointed to stubborn inflation, high fiscal deficits, elevated asset prices and continued market volatility as compounding the risks to the US economy.
JP Morgan itself raised its provision for bad debts to $3.3 billion for the first quarter - up from $1.9 billion a year earlier - as part of its efforts to hedge against growing economic uncertainty.
Dimon rejected rumors that analysts at JP Morgan were being pressured to soften their views on the consequences of the trade war, emphasizing that they are expected to speak their mind freely.
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