Economic optimism fades as new concerns emerge from industry leaders
JPMorgan Chase CEO Jamie Dimon has expressed concern about the direction of the US economy, warning that the country could be approaching a period of economic deterioration. Speaking at a Morgan Stanley conference on Tuesday, Dimon stated, “I think there’s a chance real numbers will deteriorate soon,” according to a transcript provided by FactSet to CNBC.
Dimon’s comments follow a series of mixed economic signals. While overall employment and consumer spending have continued to grow in 2025, confidence among consumers and business leaders has weakened, in part due to the ongoing impact of tariff policies under the Trump administration.
According to Dimon, the “soft landing” might be weaker going forward, suggesting that key indicators such as employment and inflation could soon shift. “Employment will come down a little bit. Inflation will go up a little bit. Hopefully, it’s just a little bit,” he added. He also identified slowing immigration as a complicating factor for the broader economy.
The head of the largest US bank, who has led JPMorgan since 2006, has developed a reputation for issuing cautious forecasts, often drawing attention to systemic financial risks. His latest remarks align with that tradition but did not signal an immediate crisis.
The latest government data reflects a slight cooling, with job growth and inflation both slowing in May, CNBC noted. Despite this moderation, many analysts remain divided on the likelihood and timing of a potential recession.
Dimon also flagged concerns over the private credit market, an area of rapid expansion on Wall Street. He cautioned that while banks may be insulated by selling off exposure after structuring deals, investors who hold private credit as a long-term asset face higher risks if market conditions deteriorate.
“Do I think that now is a good time to buy credit if I was a fund manager? No. I wouldn’t be buying credit today at these prices and these spreads,” Dimon said.
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