Key Points:
- Jamie Dimon, JPMorgan’s CEO, warned that tariffs imposed by President Trump may lead to inflation and increase the risk of a recession in the U.S.
- He highlighted that the prices of both imported and domestic goods could rise as a result, hindering economic growth.
JPMorgan Chase’s Jamie Dimon has issued a warning to investors regarding the adverse effects of President Donald Trump’s tariff policies, which could trigger price increases and further slow down the U.S. economy.
“The recent tariffs will likely increase inflation and are causing many to consider a greater probability of a recession,” Dimon noted in his annual letter to shareholders. “The real question is whether these tariffs will result in a recession, but they will certainly slow growth.”
Dimon emphasized the short-term consequences of these tariffs and the likelihood of price hikes affecting both imports and domestic markets.
As global markets, including crypto markets, reacted to Trump’s new tariff announcement, Bitcoin index fell below $79,000 to a low not seen since November, with current trades around $78,235. The CoinDesk 20 index, which tracks the largest cryptocurrencies, plummeted over 10% in one day and nearly 20% in the last month.
Despite his support for President Trump’s ‘America First’ approach, Dimon cautioned against the potential of America isolating itself. “If the Western world’s military and economic alliances disintegrated, America would inevitably weaken over time,” he said.
