Jamie Dimon, the chief executive of JPMorgan Chase, on Friday warned of a “disturbing” global landscape, highlighting a cascade of pressures including war, rising geopolitical tensions and inflation that threaten the economy and could weigh on the performance of the nation’s largest bank.
Mr. Dimon’s remarks, made at the same time as his bank’s quarterly earnings report — which showed weakness in some parts of the business — add to his litany of concerns about the US economy as the Federal Reserve grapples with when or whether to lower interest rates, especially in light of this week’s warmer-than-expected inflation data.
In a call with reporters on Friday, Mr. Dimon underscored his anxiety, describing the tired financial markets as “too happy.” He said he could not predict whether the economy would enter a recession, but that “the chance of a bad outcome is higher than people think.”
Mr. Dimon is the bank’s best-known head, and his statements are closely followed on Wall Street and in Washington. He was the only head of a major American lender to attend this week’s White House state dinner for Japan’s prime minister.
His sadness, however, also continues to be at odds with strong financial markets. In late 2022, for example, he predicted economic downturns and, potentially, a severe recession for next year; instead, the American economy grew in 2023.
JPMorgan’s financial performance was affected by more common issues. The bank reported more than $13 billion in revenue in the first quarter and nearly $42 billion in revenue, both better than expected. But its average customer deposits have fallen, and it has warned of higher costs ahead. JPMorgan also revealed a drop in what it calls net interest income, a closely watched financial metric that essentially measures how much money it makes from lending.
Wells Fargo, the nation’s third-largest bank, on Friday separately reported earnings that also included a decline in that measure. Shares of both banks were lower in early trading before the market opened on Friday.
Many economists have predicted that this year will bring a so-called soft landing, or a mild easing in growth and inflation that will allow the Federal Reserve to lower interest rates in an orderly manner.
Now, with little indication of any slowdown, it is unclear whether the central bank will make the three interest rate cuts that officials have predicted for the year. Mr. Dimon was among the few who said they were bracing for the possibility of raising interest rates again, a move that would suggest more severe inflation than currently measured.
Mr. Dimon made more extended remarks on the confusing environment in his annual letter to shareholders this week. He lamented, as usual, that the United States was engaging in deficit spending and ticked off a list of complaints about where public and private leaders had fallen short. (“Social media can do more,” he wrote.) Referring to Russia’s invasion of Ukraine and other crises, he wrote that recent events “may create risks that may exceed anything from during World War II.”
On Friday, he said the topic on his mind was “the future of the free world.”
