JPMorgan CEO Dimon Warns Trump Tariffs Inflict Undervalued Economic Risks

JPMorgan CEO Jamie Dimon has warned that the U.S. economy has not yet fully absorbed the impacts of President Trump's tariff policies, which remain at historically high levels despite some recent pauses and reductions. Dimon described the current market sentiment as displaying an "extraordinary amount of complacency," cautioning that the stock market could experience a significant downturn, potentially around 10%, as companies begin to factor in the increased costs from tariffs. He also criticized central banks for being complacent in their response to the economic challenges posed by these tariffs. Dimon highlighted risks of higher inflation and stagflation that investors may be underestimating. Additionally, he noted that credit conditions could become more constrained as a result of these economic pressures. These remarks were made during JPMorgan's annual Investor Day event, where Dimon also touched on other topics but emphasized the ongoing economic risks related to tariffs.