JPMorgan CEO Warns on Tariffs and Market Risks

JPMorgan Chase CEO Jamie Dimon has warned that markets and central bankers are significantly underestimating the risks posed by record U.S. deficits, ongoing tariffs, and heightened geopolitical tensions. Dimon stated that the likelihood of elevated inflation and stagflation is much higher than market expectations, and that current stock market valuations do not adequately reflect these risks. He attributed recent asset price rebounds and lack of immediate tariff impacts to market complacency. Dimon predicted that S&P 500 earnings estimates could fall to zero growth within six months, potentially leading to lower stock prices and price-to-earnings ratios. He also questioned whether central banks could effectively manage these accumulating risks. The warning follows Moody’s downgrade of the U.S. credit rating due to concerns about the federal debt burden, intensifying market uncertainty over the effects of President Trump’s trade policies.