From Yahoo Finance: 2025-04-09 10:40:00

JPMorgan Chase CEO Jamie Dimon predicts a US recession as a likely outcome of trade turmoil caused by President Trump’s tariffs. Dimon’s annual shareholder letter expressed concerns about slower growth and higher inflation due to tariffs.

JPMorgan’s chief US economist, Michael Feroli, forecasts a 2025 recession, citing the impact of tariffs. Dimon anticipates increased stress among bank borrowers and potential credit problems as inflation rises and credit spreads widen.

Market stress on Wall Street grows as IPOs, mergers, and bond sales are halted. US Treasury yields spike, attributed to losses by leveraged players. Treasury Secretary Bessent calls it a “de-leveraging convulsion” but not systemic.

Dimon supports Trump’s trade goals but urges progress in negotiations to calm markets. He warns of potential worsening conditions if progress isn’t made. Every nation weighs tariffs response, and public companies must update guidance on tariff impact.

President Trump applauds Dimon’s support for trade improvements. Dimon calls for calm and negotiation for successful trade deals. He emphasizes the complexity and importance of trade negotiations for long-term success.

Every nation is weighing a response to US tariffs, just as every public company must update guidance on how tariffs will impact their results. Dimon stresses the need for negotiation and patience in trade deals to avoid escalating tensions.

David Hollerith is a senior reporter for Yahoo Finance covering banking, crypto, and other financial areas. For in-depth analysis of stock market news and events, visit Yahoo Finance. Stay informed with the latest financial and business news from Yahoo Finance.

Read more: JPMorgan’s Dimon says US recession now a ‘likely outcome’