Jamie Dimon Warns U.S. Recession Still a Real Risk Despite Tariff Relief
JPMorgan Chase CEO Jamie Dimon said Thursday that the U.S. economy remains vulnerable to a potential recession, even as trade tensions ease with China.
Dimon acknowledged that while the recent rollback of tariffs is a positive sign, uncertainty still looms large over the economic outlook.
“If there’s a recession, I don’t know how big it will be or how long it will last. Hopefully we’ll avoid it, but I wouldn’t take it off the table at this point,” Dimon said.
Dimon cited internal projections from JPMorgan’s economics team, which now places the odds of a recession just below 50%. Chief U.S. economist Michael Feroli echoed that view in a recent note to clients, calling the risk “still elevated.”
Tariff Pause Brings Hope—but Uncertainty Lingers
Last week, the U.S. and China agreed to a 90-day mutual reduction in tariffs, with the Biden administration also extending the pause to duties on imports from other countries. The move sparked optimism in financial markets, but Dimon cautioned that the current tariff levels remain significantly higher than a year ago and continue to weigh on business sentiment.
“Even at this level, you see people holding back on investment and thinking through what they want to do,” he said.
The comments represent a shift from Dimon’s stance last month, when he said a recession was likely if trade tensions continued to escalate. Now, while he views the tariff rollbacks as a step in the right direction, he stressed the importance of ongoing dialogue between global powers.
“I think the right thing to do is to back off some of that stuff and engage in conversation,” Dimon added.
As the world’s largest bank by assets prepares for continued market volatility, Dimon’s remarks highlight how geopolitical and policy shifts are still casting long shadows over the economic recovery.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
