JP Morgan CEO Dimon says US recession risks remain high amid deficits and inflation

Equity markets seem to have shaken off the risk, Jamie Dimon with a caution, ICYMI.

Dimon says a U.S. recession is still a live risk. The JPMorgan Chase CEO told Bloomberg that surging federal deficits, persistent inflation and the prospect of higher long-term interest rates could yet tip the economy into contraction. “I wouldn’t take it off the table at this point,” he said, adding that he relies on his bank’s economists for precise forecasts and cannot predict “how big it will be or how long it will last” if a downturn materialises.

JPMorgan’s research team this week trimmed its recession probability to “below 50 percent,” having previously expected a slump soon after the Trump administration’s early-April tariff blitz. Chief U.S. economist Michael Feroli acknowledged that risks remain “elevated,” but Dimon cautioned that even the current uncertainty is enough to make businesses hesitate before committing to new investment.

This article was written by Eamonn Sheridan at www.forexlive.com.