According to a report by CNBC, Jamie Dimon, CEO of JPMorgan Chase, stated that the effects of government spending and monetary policies that supported the U.S. economy during the pandemic are fading, making the nation vulnerable to economic recession in the coming months. During an annual financial seminar hosted by Morgan Stanley, Dimon remarked, “I think the actual data will deteriorate soon.” Although the U.S. has continued to grow in terms of total employment and consumer spending this year, surveys indicate that consumer and business leader confidence is weakening amid Trump administration's tariff policies.

Dimon mentioned that both consumers and businesses struggle to accurately predict economic turning points, but he believes the prospects for a soft landing are diminishing. “Employment will dip slightly, and inflation will rise a bit. Hopefully just a little.” He also noted that the lower immigration levels are another complicating factor. Since becoming the CEO of JPMorgan Chase in 2006, Dimon has been known for his cautious or negative economic outlooks, and his comments on Tuesday were not unusually pessimistic.

Another area Dimon highlighted was private credit, which has become a thriving business on Wall Street and is viewed as a potential risk area during economic downturns. He explained that the risks of private credit differ significantly for banks and investors — banks arrange deals and take them off their books, while investors seek long-term returns from this asset class. “If I were a fund manager, I wouldn’t think now is a good time to buy credit. At the current price and spread levels, I wouldn’t be buying credit today,” Dimon stated.