JPMorgan CEO Dimon Downplays New Tariffs, Raises Concerns about Deficit Spending and Inflation
At the World Economic Forum in Davos, Switzerland, JPMorgan Chase CEO Jamie Dimon dismissed concerns about new tariffs imposed by the Trump administration. "People argue whether it's inflationary or not. I would put it in perspective: if it's a little inflationary, but it's good for national security, so be it," Dimon told CNBC.
Dimon emphasized that tariffs are an "economic tool" and their impact depends on their usage. However, he expressed lingering concerns about broader inflationary pressures facing the US economy. "I do have a little more caution around a bunch of subjects," he said.
Specifically, Dimon voiced concerns about deficit spending, citing it as a global issue and questioning the sustainability of inflation. He also commented on the elevated valuations in the stock market and the need for favorable outcomes to justify current prices.
Regarding billionaire Elon Musk's role in the Biden administration, Dimon expressed optimism and support. He noted that he and Musk have reconciled their differences and wished Musk success in his efforts to improve government efficiency.
Dimon's comments come amid a strong financial year for JPMorgan, which recently announced record profits for 2024 and a management shakeup. He indicated that his expected departure as CEO is likely within the next few years.