JPMorgan CEO Dimon warns tariffs could slow US growth, fuel inflation

By Nupur Anand

NEW YORK (Reuters) -JPMorgan Chase CEO Jamie Dimon cautioned investors that the turmoil caused by U.S. tariffs and a planetary commercialized warfare could dilatory maturation successful the world's largest economy, spur ostentation and perchance pb to lasting antagonistic consequences.

In his yearly missive to shareholders, published connected Monday pursuing a rout past week that wiped disconnected trillions of dollars from planetary banal markets, Dimon expressed concerns astir however the tariffs would interaction America's semipermanent economical alliances.

Asian stocks plunged connected Monday arsenic investors braced for much losses.

"The system is facing sizeable turbulence (including geopolitics), with the imaginable positives of taxation betterment and deregulation and the imaginable negatives of tariffs and 'trade wars,' ongoing sticky inflation, precocious fiscal deficits and inactive alternatively precocious plus prices and volatility," Dimon wrote.

Dimon, 69, has tally the largest U.S. slope for 19 years and is 1 of the astir salient voices successful firm America.

"We are apt to spot inflationary outcomes ... Whether oregon not the paper of tariffs causes a recession remains successful question, but it volition dilatory down growth."

JPMorgan's economists raised the hazard of a U.S. and planetary recession this twelvemonth to 60% from 40% aft U.S. President Donald Trump unveiled the steepest commercialized barriers successful much than 100 years past week. When asked connected Sunday astir falling markets, Trump said sometimes you person to instrumentality medicine to hole something.

Dimon noted the imaginable for retaliation by different countries and said tariffs could impact economical confidence, investments, superior flows, firm profits and the dollar.

"The quicker this contented is resolved, the amended due to the fact that immoderate of the antagonistic effects summation cumulatively implicit clip and would beryllium hard to reverse," the CEO wrote.

Dimon often weighs successful connected authorities policies, and has been consulted by officials successful times of crisis.

His sanction was floated for elder economical roles successful authorities during the 2024 statesmanlike campaign, including Treasury secretary, but helium stayed enactment astatine the bank.

Tariffs besides rise questions astir the absorption of involvement rates, Dimon said. While rates person declined precocious due to the fact that of the weaker dollar, the imaginable of slower maturation and declining hazard appetite could origin rates to rise, helium said, referring to the stagflation of the 1970s.

Expectations for humble U.S. growth, known arsenic a brushed landing, could besides beryllium derailed.

"We participate this clip of uncertainty with precocious equity and indebtedness prices, adjacent aft the caller diminution ... markets inactive look to beryllium pricing assets with the presumption that we volition proceed to person a reasonably brushed landing. I americium not truthful sure," Dimon wrote.

(Reporting by Nupur Anand successful New York; Editing by Lananh Nguyen and Himani Sarkar)