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JPMorgan's Jamie Dimon warns U.S. economy could soon 'deteriorate'
CNBCยท 2025-06-11 13:12
Economic Outlook - JPMorgan Chase CEO Jamie Dimon indicated that the effects of pandemic-era government spending and monetary policy are diminishing, making the U.S. economy vulnerable to a potential downturn in the coming months [1] - Dimon expressed concern that real economic numbers may deteriorate soon, despite ongoing growth in total employment and consumer spending this year [2][4] - He noted that while employment and inflation are expected to experience slight declines and increases respectively, the overall economic "soft landing" may appear weaker going forward [3] Consumer and Business Confidence - Dimon acknowledged weakening confidence among consumers and business leaders, attributing it partly to the Trump administration's tariff policies [2] - He downplayed survey data indicating this weakening, suggesting that neither consumers nor businesses can accurately predict inflection points in the economy [3] Private Credit Concerns - Dimon warned about the risks associated with private credit, which has seen significant growth on Wall Street and could pose challenges in the event of a recession [5] - He differentiated the risks for banks, which arrange deals and subsequently offload them, from those faced by investors seeking long-term returns from private credit [5] - Dimon advised against purchasing credit at current prices and spreads, indicating that it is not an opportune time for fund managers to invest in this asset class [6]