Jamie Dimon, CEO of JPMorgan Chase, leaves the Capitol of the United States after a meeting with Republican members of the Banking, Housing and Urban Affairs of the Senate on the issue of the elimination of February 13, 2025.
Tom Williams | Call Call Call, Inc. | Getty images
JPMorgan Chase CEO Jamie Dimon said on Monday that markets and central bankers underestimate the risks created by American record deficits, tariffs and international tensions.
Dimon, the veteran CEO and president of the largest American bank for assets, explained his worldview during the annual investor day meeting in New York. He said he believes that the risks of greater inflation and even stanings are not adequately represented by securities market values, which have organized a minimum return in April.
“We have great deficits; we have what I consider almost complacency central banks,” Dimon said. “Everyone thinks they can handle all this. I don't think they can,” he said.
“My own point of view is that people feel quite well because you haven't seen effective rates,” Dimon said. “The market fell 10%, [it’s] Make a 10%backup. That is an extraordinary amount of complacency. “
Dimon's comments follow the Moody qualification agency that reduced the United States credit qualification on Friday for concerns about the government's increasing debt burden. The markets have been whipped in recent months because of concerns that the commercial policies of President Donald Trump elevate inflation and grant the world's largest economy.
Dimon said on Monday that he believed that Wall Street's profits are estimated S&P 500 Companies, which have already decreased in the first weeks of Trump's commercial policies, will fall even more as companies drive or decrease orientation amid uncertainty.
In six months, those projections will fall to 0% growth in profits after starting the year in about 12%, Dimon said. If that happened, actions prices will probably fall.
“I think that earnings estimates will decrease, which means that it will fall,” said Dimon, referring to the price / profits ratio closely tracked by stock market analysts.
The probabilities of stagflation, “which is basically a recession with inflation”, are approximately twice what the market thinks, added Dimon.
Separately, one of Dimon's main deputies said corporate clients are still in “waiting and seeing” when it comes to acquisitions and other agreements.
Investment bank revenues are aimed at a percentage decrease in “adolescents” in the second quarter compared to the winning year period, while commercial revenues were higher for a percentage of a single digit from “medium to high,” said Troy Rohrbaugh, a co-establishment of the Commercial Bank and Investment of the company.
On the always present issue of Dimon's timeline to deliver the CEO's reins to one of his deputies, Dimon said nothing has changed his orientation last year, when he said he would probably remain for less than five more years.
“If I'm here for four more years, and maybe two more” as executive president, Dimon said: “That's a long time.”
Of all the executive presentations given on Monday, the head of consumer banking Marianne Lake had the longest speech time at a full hour. She is considered a main successor candidate, especially after Operations Director Jennifer Pepszak said she would not look for the main work.
