JPM Dimon said the US economy is resilient but warned markets may be underpricing risk

Summary:

• Dimon says US economy remains resilient

• Labour market softer but not worsening materially

• Consumers still spending; businesses broadly healthy

• Tailwinds: fiscal support, deregulation, Fed policy

• Risks: geopolitics, sticky inflation, high asset prices

Pasting as an ICYMI.

JPMorgan Chase chief executive Jamie Dimon said the U.S. economy remains resilient even as labour market momentum cools, arguing that consumer spending and generally healthy corporate conditions could keep activity supported for some time.

In comments released alongside the bank’s latest communications, Dimon said labour markets have softened but do not appear to be deteriorating materially. He also pointed to continued consumer spending as a key pillar of growth, suggesting households have so far absorbed higher rates and price levels without a sharp pullback.

Dimon said supportive conditions could persist, highlighting ongoing fiscal stimulus, the potential benefits from deregulation, and the Federal Reserve’s recent monetary policy settings as factors that may help keep the expansion intact. The message aligns with a broader “soft-landing” narrative: cooling but not collapsing labour dynamics, steady consumption, and businesses that remain broadly functional despite higher financing costs and lingering uncertainty.

However, Dimon warned that markets may be underpricing the downside risks. He flagged “complex geopolitical conditions” as a potential shock vector, alongside the risk that inflation remains stickier than expected. He also pointed to elevated asset prices, implying that stretched valuations could amplify volatility if the macro environment deteriorates or if policy expectations shift.

The tone was cautious rather than bearish: Dimon acknowledged the resilience in current conditions but emphasised vigilance, reflecting a view that the economy can stay firm while still being vulnerable to tail risks. For investors, his comments underscore a key tension in current pricing, a market leaning into stability and easing inflation, while major corporate leaders continue to highlight geopolitical uncertainty, inflation persistence and valuation risk as underappreciated hazards.

This article was written by Eamonn Sheridan at investinglive.com.