JPMorgan's Dimon says US recession now a 'likely outcome'

JPMorgan Chase (JPM) CEO Jamie Dimon called a US recession a "likely outcome" amid the turmoil triggered by President Trump's tariffs and warned that a antagonistic marketplace absorption to commercialized policies "could get worse if we don't marque immoderate progress."

The brag of the largest US slope went a measurement further than however helium described the eventual economical result successful his yearly shareholder missive Monday, wherever helium stopped abbreviated of predicting a recession adjacent arsenic helium noted tariffs could pb to some short-term ostentation and slower growth.

When asked Wednesday connected Fox Business Network's "Mornings with Maria" if helium expects a recession, Dimon said "I americium going to defer to my company, but I deliberation astir apt that's a apt outcome."

JPMorgan's ain main US economist, Michael Feroli, became the archetypal large Wall Street slope researcher past week to foretell a 2025 recession, attributing his telephone to "the value of the tariffs."

Dimon discussed different imaginable outcomes of the unfolding chaos, including accent among slope borrowers. When asked Wednesday whether helium was seeing a rising fig of companies default connected their loans, Dimon said "not yet but I expect them."

"If you person rates going up a small bit, and ostentation is sticky, and recognition spreads are gapping out, which they're going to, I deliberation you'll spot much recognition problems than radical person seen successful a agelong time," helium added.

More clues connected however JPMorgan could beryllium affected whitethorn travel connected Friday arsenic the slope reports its first-quarter earnings.

The signs of accent connected Wall Street person been mounting. IPOs and mergers were enactment connected the shelf. Leverage indebtedness deals were shoved to the sidelines. Bond income were paused.

US Treasury yields person besides spiked this week, a improvement that Treasury Secretary Scott Bessent attributed to "some precise ample leveraged players" that are experiencing losses but said it is “nothing systemic."

Bessent, besides appearing connected "Mornings with Maria," said of the chaos successful the enslaved marketplace that "this is 1 of those de-leveraging convulsions” that hap but "I judge that determination is thing systemic astir this."

"I deliberation that it is an uncomfortable but mean deleveraging that’s going connected successful the enslaved market."

Dimon connected Wednesday did connection immoderate enactment for the larger goals of President Trump to marque commercialized amended for the US.

"It is perfectly tenable for idiosyncratic to accidental commercialized was unfair," helium said.

Within the hour, the president applauded the remark with a station from his TruthSocial account, saying, "'Fixing Trade and Tariffs is simply a bully thing!'" — attributing the operation to Dimon.