Trade negotiations dominated discussions at last week’s International Monetary Fund meetings in Washington. JPMorgan Chase & Co. JPM hosted a private session where CEO Jamie Dimon and Treasury Secretary Scott Bessent addressed President Donald Trump’s trade policies with more than 500 investors.
The Details: Bessent indicated in the closed-door session that trade negotiations with China could extend over the next two to three years, according to a Wall Street Journal report. He also emphasized the objective was not to decouple the U.S. and Chinese economies.
Read Next: Alexandria Ocasio-Cortez Asks,’How Much Did Majorie Taylor Greene Make When She Bought The Dip?’
Dimon, who just three months ago said “businesses are more optimistic about the economy” and the then-incoming Trump administration’s “pro-growth agenda,” now says that a mild recession would be the best-case outcome of the ongoing trade war, according to people in attendance.
Dimon’s comments at the IMF meeting are the most recent in a series of strong warnings from the JPMorgan CEO.
He previously stated that a recession is now the “likely outcome” due to Trump’s tariffs. Many companies are expected to withdraw or revise their forecasts because of the unpredictability.
Dimon also cautioned that diminished consumer and investor confidence could further exacerbate the economic downturn.
“A 2,000-point Dow decline creates a self-reinforcing cycle – people see losses in retirement accounts and pensions, leading to spending cuts,” he said.
Markets have been extremely volatile since Trump’s trade announcements on April 2. However, the S&P 500, tracked by the SPDR S&P 500 ETF SPY, recovered all of its losses earlier in the month.
Dimon has emphasized that while the U.S. remains economically strong, the tariff uncertainty challenges that stability and could have lasting negative consequences.
“Take a deep breath, negotiate some trade deals,” Dimon urged the Trump administration in early April. “It could get worse if we don’t make progress.”
Read Next:
Image created using photos from Shutterstock.
Add Comment