JPMorgan Chase CEO Jamie Dimon has warned that President Donald Trump’s trade policies could pose “significant risks” to the U.S. economy. He gave out this statement even as the bank posted strong second-quarter results. In a statement released Tuesday, Dimon stated that the economy “remained resilient” during the second quarter, citing recent tax reforms and the possibility of further deregulation as positive signs. However, he cautioned that serious challenges remain.
“The finalization of tax reform and potential deregulation are positive for the economic outlook, however, significant risks persist – including from tariffs and trade uncertainty, worsening geopolitical conditions, high fiscal deficits and elevated asset prices,” Dimon said. Meanwhile, in the latest result, JPMorgan still surpassed Wall Street expectations. The company’s profit fell $14.2 billion in the second quarter. However, the revenue climbed 15% to $8.9 billion.
Dimon also hit back at Trump’s allies recently saying that the independence of Federal Reserve is “absolutely critical.” “The President said he’s not going to try to remove Jay Powell,” Dimon said after the publication of the bank’s second quarterly earnings report. “The independence of the Fed is absolutely critical, and not just for the current Fed chairman, who I respect, but for the next Fed chairman.” He further added, “Playing around with the Fed can often have adverse consequences, absolutely opposite of what you might be hoping for.”
This is not the first time Dimon is speaking against Trump’s trade policies. He had cautioned that Trump tariffs could lead to a stagflation in the economy. “There’s a chance that we’ll have stagflation in the U.S.,” he said. Researchers from JPMorgan has supported this view, suggesting stagflation could begin to take hold as early as this summer. Dimon stated that tariffs won’t necessarily sink the U.S. economy but could contribute to significant disruptions.