JPMorgan CEO Warns Of Market Complacency And Inflation Risks

During a trip to Ireland, JPMorgan Chase (JPM) Chief Executive Officer Jamie Dimon warned of market complacency and looming inflation risks.

Speaking to Ireland’s Department of Foreign Affairs, Dimon, who leads the world’s largest commercial bank, issued a downbeat outlook for the stock market.

Dimon said there is “complacency in the markets,” and that investors have become a “little desensitised” to tariff news.

He also warned that inflation could re-emerge as a significant problem in the U.S. and that there’s a real risk of interest rates rising again.

“The market is pricing a 20% chance (of a rate hike), I would price in a 40-50% chance. I would put that as a cause for concern,” said Dimon, according to multiple media reports.

In June of this year, Dimon told a conference that the U.S. economy was vulnerable “to a downturn in the coming months,” with a “chance real numbers will deteriorate soon.”

The comments from Dimon, who has led JPMorgan since 2006, come as U.S. President Donald Trump resurrects his tariff agenda.

In recent days, President Trump threatened 50% duties on Brazilian imports, a 50% duty on copper, and 35% tariffs on Canada.

While U.S. markets are down on July 11 over worries about Trump’s latest tariffs, Wall Street indices are currently sitting near all-time highs as investors remain largely bullish on equities.

Dimon has repeatedly warned that tariffs will have an impact on the U.S. economy and markets in coming months and that investors and traders should proceed with caution.

While in Ireland, Dimon also discussed European competitiveness vis-à-vis the U.S. and Asia, telling Irish government officials bluntly, “You’re losing.”

Dimon noted that “Europe has gone from 90% U.S. GDP to 65% over 10 or 15 years. That’s not good… We’ve got this huge, strong market and our companies are big and successful, have huge kinds of scale that are global. You have that, but less and less.”

The CEO called for the European Union (EU) to reduce trade barriers, complete its capital markets and banking unions, and streamline its regulation, tax and legal regimes to increase investment and boost growth.

On competitiveness, Dimon said: “Everything should be a single market.”

JPM stock has gained 20% this year to trade at $288.19 U.S. per share.