JPMorgan CEO Jamie Dimon says markets are too complacent on tariffs, expects S&P 500 earnings growth to collapse

JPMorgan Chase CEO Jamie Dimon said Monday that markets and cardinal bankers underappreciate the risks created by grounds U.S. deficits, tariffs and planetary tensions.

Dimon, the seasoned CEO and president of the biggest U.S. slope by assets, explained his worldview during his bank's yearly capitalist time gathering successful New York. He said helium believes the risks of higher ostentation and adjacent stagflation aren't decently represented by banal marketplace values, which person staged a comeback from lows successful April.

"We person immense deficits; we person what I see astir complacent cardinal banks," Dimon said. "You each deliberation they tin negociate each this. I don't think" they can, helium said.

"My ain presumption is radical consciousness beauteous bully due to the fact that you haven't seen effectual tariffs" yet, Dimon said. "The marketplace came down 10%, [it's] backmost up 10%; that's an bonzer magnitude of complacency."

Dimon's comments travel Moody's standing bureau downgrading the U.S. recognition standing connected Friday implicit concerns astir the government's increasing indebtedness burden. Markets person been whipsawed the past fewer months implicit worries that President Donald Trump's commercialized policies volition rise ostentation and dilatory the world's largest economy.

Dimon said Monday that helium believed Wall Street net estimates for S&P 500 companies, which person already declined successful the archetypal weeks of Trump's commercialized policies, volition autumn further arsenic companies propulsion oregon little guidance amid the uncertainty.

In six months, those projections volition autumn to 0% net maturation aft starting the twelvemonth astatine astir 12%, Dimon said. If that were to happen, stocks prices volition apt fall.

"I deliberation net estimates volition travel down, which means PE volition travel down," Dimon said, referring to the "price to earnings" ratio tracked intimately by banal marketplace analysts.

The likelihood of stagflation, "which is fundamentally a recession with inflation," are astir treble what the marketplace thinks, Dimon added.

Separately, 1 of Dimon's apical deputies said that firm clients are inactive successful "wait-and-see" mode erstwhile it comes to acquisitions and different deals.

Investment banking gross is headed for a "mid-teens" percent diminution successful the 2nd 4th compared with the year-earlier period, portion trading gross was trending higher by a "mid-to-high" azygous digit percentage, said Troy Rohrbaugh, a co-head of the firm's commercialized and concern bank.

On the ever-present question of Dimon's timeline to manus implicit the CEO reins to 1 of his deputies, Dimon said that thing changed from his guidance past year, erstwhile helium said helium would apt stay for little than 5 much years.

"If I'm present for 4 much years, and possibly 2 more" arsenic enforcement chairman, Dimon said, "that's a agelong time."

Of each the enforcement presentations fixed Monday, user banking main Marianne Lake had the longest speaking clip astatine a afloat hour. She is considered a apical successor candidate, particularly aft Chief Operating Officer Jennifer Piepszak said she would not beryllium seeking the apical job.