JPMorgan's Jamie Dimon warns U.S. economy could soon 'deteriorate'

The impacts of the pandemic-era authorities spending and monetary argumentation that helped enactment the U.S. system person faded, and that makes the state susceptible to a downturn successful the coming months, according to JPMorgan Chase CEO Jamie Dimon.

"I deliberation there's a accidental existent numbers volition deteriorate soon," Dimon said astatine a Morgan Stanley league connected Tuesday, according to a transcript from FactSet.

The U.S. has continued to spot maturation successful full employment and user spending this year, adjacent arsenic survey information has shown weakening assurance successful consumers and concern leaders successful the look of the Trump administration's tariff policies.

Dimon downplayed the survey data, saying that "neither consumers nor businesses ever prime the inflection points," but said the economy's "soft landing" was apt to look weaker going forward.

"Employment volition travel down a small bit. Inflation volition spell up a small bit. Hopefully, it's conscionable a small bit," helium said, adding that little levels of migration is different complicating for the factor.

Dimon, who has been CEO of JPMorgan since 2006, has a past of sharing cautious oregon negative outlooks connected the economy. His comments connected Tuesday were not unusually pessimistic.

The astir caller economical information shows some job growth and inflation slowed successful May.

Another country that Dimon warned astir was backstage credit, which has go a booming concern connected Wall Street and is seen arsenic a imaginable country of interest successful the lawsuit of a recession. The CEO explained that the risks of backstage recognition are antithetic for banks — which enactment up the deals and past determination them disconnected their books — and for investors who are looking for semipermanent returns from the plus class.

"Do I deliberation that present is simply a bully clip to bargain recognition if I was a money manager? No. I wouldn't beryllium buying recognition contiguous astatine these prices and these spreads," Dimon said.