The CEO of JPMorgan Chase, Jamie Dimon, warns against the economic pain of Trump prices

President Trump’s wave of prices threatens to both bring short -term economic pain, including lower growth, and long -term damage to US standing and commercial relations around the world, warned the largest bank of Wall Street on Monday.

“Recent prices will probably increase inflation and have to consider a greater probability of recession,” wrote Jamie Dimon, managing director of JPMorgan Chase in his annual letter to shareholders.

The warning of Mr. Dimon, one of the most influential leaders of Wall Street, echoes the growing anxiety of business leaders on the way the prices take place. Even those who initially professed support for Mr. Trump’s trade plans are becoming more and more worried about the consequences.

Even before the announcement of Trump’s price last week, the American economy showed signs of tension after years of healthy performance, Mr. Dimon wrote. Inflation was already a concern, he said, pointing to a yawning budget deficit and the need for more infrastructure expenses. And the actions assessments remain well above historical averages, even after the recent market sale.

The potential consequences of the commercial struggle could worsen things, said the letter. These include the efforts of other countries to retaliate – as China has done by imposing 34% offsets – and possible erosion of confidence among consumers and investors. Mr. Dimon also warned of the weakening of the role of the US dollar as a global reserve currency.

“If America, for any reason, becomes a less attractive investment destination, the US dollar and the economy could suffer if foreigners sold their American assets,” he wrote.

JPMorgan’s own economists have said more and more that a recession is more likely this year, although Mr. Dimon has not personally taken up position in his shareholder letter.

Although he said that JPMorgan himself was strong enough to resist the shocks that the samples posed – his traders took advantage of the previous WUPWSAs on the markets – the world economy may not be as lucky. “It is not particularly good for capital markets,” wrote Dimon about volatility linked to prices.

For the moment, Mr. Dimon wrote, he hopes for a quick resolution to trade battles. “The more quickly, this problem is solved, the better, because some negative effects increase cumulatively over time and would be difficult to reverse,” he wrote.

The longer-term concern, Dimon said, is that Mr. Trump’s fight could shout old decades alliances that have cemented the primary of the United States in the world. The head of JPMorgan wrote that he feared that the American business partners to seek agreements with people like China, Iran or Russia in response to the prices.

“America is first of all,” wrote Mr. Dimon, referring to Mr. Trump’s description of his policies, “as long as she does not end up being America alone.”