Jamie Dimon: US Economy Facing a Possible Recession

JPMorgan Chase CEO Jamie Dimon warned Wednesday that he expects the US economy to be heading toward a recession, as President Donald Trump’s tariffs weigh on financial markets. As the trade war between the United States and China escalates, stocks and bonds suffered another sharp decline in morning trading.

Stock market futures fell, and bond yields rose sharply amid concerns about financial and economic stability, as a result of trade tensions between the two countries. “I think that’s a likely outcome because, I mean, when the markets see a 2,000-point drop in the Dow Jones Industrial Average, you definitely feel like you’re losing money in your retirement account, so you’re going to cut back on spending,” Dimon said on Fox Business.

Recession fears have been growing on Wall Street, as Trump’s tariffs have raised uncertainty about how far the trade war will escalate. Most recently, China announced it would impose an 84% tariff on all U.S. goods, 50 percentage points higher than the previous level, as reciprocal U.S. tariffs take effect worldwide.

Dow futures fell more than 800 points, while 10-year Treasury yields rose about 20 basis points, or 0.2 percentage points.

JP Morgan economists expect U.S. GDP to contract 0.3% this year, a mild recession, but one that comes after a strong year of growth.

Dimon noted, “Markets aren’t always… Right, but sometimes it’s right. I think it’s right this time because it’s only assessing uncertainty at the macro level, and at the micro level, which is the company level, and then how it affects consumer confidence. It’s hard to say.”