JPMorgan CEO Warns of U.S. Economic Deterioration, Cautions on Private Credit

JPMorgan Chase & Co. CEO Jamie Dimon has issued a warning that the U.S. economy is likely to deteriorate in the coming months. Dimon, who has been at the helm of the financial giant since 2006, has a history of sharing cautious or negative views on the economy.

Speaking at the Morgan Stanley conference on Tuesday, Dimon expressed his concerns about the economic outlook. He stated, "I think the real data is going to get worse soon." Despite survey data indicating that consumer and business leader confidence is waning due to the Trump administration's tariff policies, the U.S. has seen continued growth in total employment and consumer spending this year.

Dimon downplayed the significance of survey data, noting that "consumers and businesses cannot predict the turning point." However, he suggested that signs of a soft economic landing may become more sluggish. He added, "Employment will decline slightly, and inflation will rise slightly. I hope it's just a little bit." He also mentioned that a decrease in immigration levels is another complicating factor.

Dimon's warnings extend to private credit, a burgeoning industry on Wall Street that is also seen as a potential area of concern during an economic downturn. The CEO explained that the risks associated with private credit differ for banks, which facilitate transactions and remove them from their balance sheets, and investors seeking long-term returns from this asset class.

Dimon advised, "If I were a fund manager, I would not think this is a good time to buy credit. At current prices and spreads, I would not buy credit today." His comments reflect a broader concern about the potential risks in the private credit market, which has seen significant growth in recent years.