JPMorgan Chase CEO Jamie Dimon on Tuesday said that while the U.S. economy has stayed strong through the second quarter of this year, there remain potential stumbling blocks to the economic outlook.
Dimon said that the “U.S. economy has remained resilient” and noted that while there are potential boosts coming from the enactment of Republicans’ tax and spending package, other headwinds could dampen the economic outlook going forward.
“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 Tuesday.
Dimon said that JPMorgan tends to be measured when it makes projections due to the past crises that emerged and caught many off guard.
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“Our forecasting of the future is very complex. You probably heard me say that sometimes it’s a complete waste of time. Most people cannot really pick inflection points,” he explained.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| JPM | JPMORGAN CHASE & CO. | 286.30 | -2.39 | -0.83% |
The CEO of the nation’s largest bank also discussed President Donald Trump’s dispute with the Federal Reserve and its leadership.
Trump has repeatedly called for the Fed to cut interest rates, mocking Federal Reserve Chair Jerome Powell with derisive comments and publicly mulling an effort to fire him.
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The president has said he won’t attempt to fire Powell, which he lacks the legal authority to do except for cause, though his allies have suggested a renovation project at the Fed’s headquarters that has experienced cost overruns could provide cause for an attempted termination.
“The president said he’s not going to try to remove Jay Powell,” Dimon told reporters on a conference call. “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.”
“Playing around with the Fed can often have adverse consequences, absolutely the opposite of what you might be hoping for,” Dimon added.
Reuters contributed to this report.
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