According to a report by CNBC, JPMorgan (JPM-US) CEO Jamie Dimon warned that the effects of government spending and monetary policy that had supported the U.S. economy during the pandemic are waning, increasing the risk of economic recession in the coming months. Dimon stated at the Morgan Stanley (MS-US) Annual Financial Conference, "I believe the actual data will deteriorate soon."

Despite continuous growth in overall employment and consumer spending in the U.S. this year, surveys show that confidence among consumers and business leaders is weakening due to the tariffs imposed by the Trump administration. Dimon echoed that both consumers and businesses find it hard to predict economic turning points, but he believes that the prospects for a soft landing are diminishing. "Employment will slightly decline, and inflation will slightly rise. Hopefully just a bit," he pointed out.

He also emphasized that the lower level of immigration is another complicating factor. Since taking the helm of JPMorgan in 2006, Dimon has consistently expressed cautious or negative economic outlooks, and his comments on Tuesday were not unusually pessimistic. Another area he warned about is private credit, which has become a booming business on Wall Street and is seen as a potential risk area during an economic downturn. He explained that the risks of private credit are fundamentally different for banks and investors—banks arrange trades and then take them off their books, while investors seek long-term returns from this asset class. "If I were a fund manager, would I consider this a good time to buy credit? No. Given the current price and spread levels, I would not buy credit today," Dimon stated.