Cnn
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JPMorgan CEO Jamie Dimon issued a blunt warning concerning President Donald Trump’s pricing policy: it threatens to increase prices, generate the world economy in a slowdown and weaken the American position in the world.
“Recent prices will probably increase inflation and have to consider a greater probability of recession,” Dimon warned in his annual letter to shareholders. “The question of whether the price menu causes a recession remains in question, but that will slow growth.”
Dimon, one of the most influential business leaders in the world, said that the “extraordinary position” in the United States in the world was built on the strength of its economy, its military and its moral. But Trump’s “America First” foreign policy could undermine the United States’s special position in the world.
“If the military and economic alliances of the Western world are fragment, America itself would inevitably weaken over time,” he said.
In previous letters, Dimon warned against geopolitical factors, such as wars in Ukraine and the Middle East, which, according to him, threatened to send powerful shock waves throughout the world economy. But has Rarely Dimon been so frank about a single American economic policy.
Dimon was largely silent on Trump’s pricing policy Since he told CNBC in January that, if the President’s rates helped stimulate the manufacture of the United States while causing a little inflation, people should “rely”.
But the prices that Trump has announced are much more serious and widespread than most planned. Dimon now sounds a very different tone: accumulate.
Despite a recent market plunge, actions could drop even further, said Dimon. The US stock market is expected to open near the territory of the bear market after reaching a record level less than seven weeks ago on February 19. It could be the second fastest market change in history (the fastest occurred during the 2020 pandemic).
“Even with the recent drop in market values, prices remain relatively high,” said Dimon. “These important and somewhat unprecedented forces make us remain very cautious.”
This is a story in development and will be updated.