- Jpmorgan Chase CEO Jimmy Damon He warned in his annual message to shareholders that the policy of the comprehensive tariffs of President Trump can increase inflation and increase the risk of stagnation, although his deeper concern lies in the long -term possible damage to America’s alliances with the main and commercial military partners.
Jimmy Damon has become the CEO of JPMorgan Chase Increasingly By President Donald Trump’s tariff policy.
The white knight in Wall Street has now echoed the senior banker leaders and warned that the modern White House procedures are likely to prove inflation and the economy can turn into stagnation.
However, Dienon, who has led the world’s largest bank nearly 20 years, said that his main concern is not a short -term economic pain, but how America will keep relations with the main military and commercial partners.
When President Trump announced comprehensive economic sanctions on April 2, he explained this “The friend and enemy” was dealt with bothWith major allies such as the European Union, they face a 20 % increase.
While world leaders Express their anger With the tariff policy, for them The immediate response was the pledge to negotiate With the oval office. Whether their suggestions will be sufficient to satisfy the Trump administration and bring down the customs tariff rate.
He has A message to the shareholders This year, Damon wrote the definitions, “It is likely that you increase inflation and cause a greater possibility of stagnation … These important and somewhat unprecedented forces make us remain very careful.”
But he added: “The most dangerous concern is how this will affect the long -term economic alliances.”
Europe, in particular, has often highlighted as a hotbed of geopolitical tension as a result of the Ukraine war with Russia.
This was not helped by President Trump Recently – and with the prime minister in Ukraine Volodymyr Zelenskyy.
However, Trump is far satisfied with President Putin, Saying last month He is “very angry” and “angry” with the Russian Prime Minister.
Dienon wrote in the letter issued today: “Preserving our alliances together, from a military and economic point of view, is necessary.” “The opposite is exactly what our opponents want.”
The banker, who paid $ 39 million for his work in 2024, wrote that the European Union is far from perfection, as it raises gesture to President Trump’s main concern that European countries are not spent enough on their military capabilities.
But Damon added: “This will be difficult, but our country’s goal should be to help make European countries stronger and keep them close. If the economic weakness in Europe leads to fragmentation, the scene will look like the world before the Second World War.
“Each country will need to search for its own relations to secure its future, and this may mean closer relations with Russia and Iran for energy and China for trade and economy.”
He added that these moves, over time, will increase dependence on China and Russia, and turn the former uncle Sam into “sub -states” for their competitors.
Damon added: “The economy has been glue for a long time, and America first is fine, as long as it does not end until America is alone.”
JPMorgan recently raised recession from 40 % to 60 %
In a series of views on Trump’s tariff policy, Demon’s contract, so far, a somewhat balanced view.
He initially said that the policy can prove some inflation, but it can eventually prove good for national security, in which case People need “overcoming it.”
Damon has a long The uncle of Sam called for weaning from his dependence on other countries, especially when it comes to national security. In his letter to shareholders last year, he wrote “The United States cannot depend on any potential opponents of the basic materials of our national security.”
However, Damon added, that the final benefits of achieving greater American independence will come with some pain.
“Whatever you think about the legitimate reasons for the newly announced definitions-and of course, there is some long-term effect, good or bad, there are likely to have a short-term important effects.”
“For the short term, we are likely to see inflationary results, not only on imported goods but on local prices, with high input costs and increased demand for local products.
“How this matter depends on various products in part on the ability to replace and elastic price. Whether the list of definitions that remain in a stagnation is still a question, but it will slow down.”
Jpmorgan recently raised Ruming forecast from 40 % to 60 %After a similar procedure From Goldman Sachs.
Damon added: “There are many uncertainty surrounding the new tariff policy: potential revenge measures, including services, by other countries, influencing confidence, influencing investments and capital flows, and affecting corporate profits and the potential impact on the US dollar.”
“The faster this problem is solved, the better because some negative effects increase cumulative and it will be difficult to reverse. In the short term, I see this an additional additional straw on the back of the camel.
“I hope that after negotiations, a long -term influence will have some positive benefits to the United States.”
This story was originally shown on Fortune.com
