US Economy Weakens After 911,000 Jobs Revision, Dimon Warns

Recent economic data signals a clear slowdown in the U.S. economy, with Fitch Ratings and JPMorgan CEO Jamie Dimon highlighting weaker job growth, reduced consumer spending, and inflation pressures linked to tariffs. The Labor Department's significant downward revision of nonfarm payrolls by 911,000 jobs for the year ending March 2025—the largest in over two decades—has prompted concerns about a stalling labor market and waning economic momentum. While corporate profits remain relatively strong, household spending and confidence are softening, contributing to an uncertain economic outlook. Fitch anticipates the Federal Reserve will cut interest rates multiple times through late 2025 and 2026 in response to these trends. Meanwhile, tariffs continue to pose inflation risks, potentially pushing prices higher and further dampening real wage growth and consumer activity. Despite a strong GDP growth of 3.3% in Q2 2025, these indicators collectively suggest a weakening economy with mixed signals about whether it is heading towards recession or just a slowdown.