The head of JPMorgan Chase Jamie Dimon warned that the customs war could have long -lasting and negative consequences, “Reuters said. “Whether duties will cause a recession or not – it remains a contentious issue, but will slow down growth” – emphasized one of the most important people on the American financial market.
A few days earlier, Dimon and other bosses of American banks met with the Secretary of Trade Howard Lutnicki to discuss the extensive duties of the administration.
In the annual letter to shareholders, Dimon expressed concerns about long -term economic relations USA.
Trump's duties and effects on the economy
“The economy is in the face of significant turbulence (including geopolitics). We will probably see inflationary effects. Whether duties will cause a recession or not – it remains a disputed issue, but will slow down growth” – pointed out the head of JPMorgan in a letter cited by Reuters.
“The sooner this problem is solved, the better, because some negative effects increase over time and it will be difficult to reverse them,” he added.
He explained that tariffs and trade war could cause persistent inflation and high budget deficits and high variability on the market.
He also expressed the fear that duties would cause retaliation and influence economic trust, investments, capital flows, enterprise profits and dollar.
69-year-old Dimon is one of the most significant voices in corporate America. He often speaks about the government's policy and was asked to consult officials during the crisis, “Reuters pointed out.
JPMorgan economists have raised the risk of recession in the USA and in the world this year with 40 percent. up to 60 percent After Trump's new duties.
Risk of increasing interest rates
Dimon also pointed out that the new duties can affect the height interest rates Reuters wrote. He explained that although the feet have fallen recently, because of the weaker dollar the prospect of slower growth and decreasing appetite at risk may cause them to raise them.
“We enter at this time uncertainty with high action and debt prices, even after a recent decline … Markets still seem to value assets with the assumption that we will continue to have a fairly soft landing. I am not so sure” – wrote the agency quoted by the agency.
Meetings and conversations
Reuters said that the billionaire Bill Ackman is also concerned about tariffs. “If the duties are imposed this week, we are heading towards the Samoscro -Carbonated, economic nuclear winter” – wrote Ackman on the website X.
He added that they would hinder business investments and consumer expenses and seriously harm the US reputation for years.
In addition, on Sunday, the directors of the general banks, including Dimon and Brian Moynihan, the head of Bank of America, talked by phone, discussing the repercussions related to the customs. The interview was to be initiated by the Policy Institute Bank, an association representing large American lenders.
Source of the main photo: PAP/EPA/JIM LO SCALZO/POOL