JP Morgan Chief Executive Jamie Dimon warned that President Donald Trump’s trade policies may pose “significant risks” to the US economy
He gave this statement even as the bank announced second-quarter profits that were once again boosted by its trading.
Jamie Dimon, the most influential banker in the US, said in a statement on Tuesday that the country’s economy “remained resilient” during the second quarter, PTI reported.
He cited tax reform and the potential for more deregulation as positives.
However, he also noted that plenty of risks remain, which include tariffs and uncertainties surrounding trade.
These risks have the potential of worsening geopolitical conditions and elevated fiscal deficits, he mentioned.
“The finalization of tax reform and potential deregulation are positive for the economic outlook, however, significant risks persist – including from tariffs and trade uncertainty, worsening geopolitical conditions, high fiscal deficits and elevated asset prices,” Dimon said in prepared remarks.
Dimon, known for his broad commentary on global and economic issues, is often sought for his insights by influential figures.
He is viewed as the banker that Washington and global leaders can turn to for advice, including both solicited or unsolicited.
His comments tend to reverberate throughout Washington and Corporate America, the news agency reported.
JPMorgan’s second-quarter profit fell to $14.2 billion in the second quarter of this year, but the New York bank still managed to beat Wall Street expectations.
CEO Jamie Dimon on Tuesday touted another strong performance by the bank, particularly in its markets division, where revenue rose by 15 per cent to $8.9 billion.
The country’s biggest banks have benefitted from higher interest rates for the last two years, but many expect the Federal Reserve to cut its benchmark lending rate up to two times this year, which will impact banks’ profitability.
Total managed revenue hit $45.7 billion, also beating expectations but below last year’s $51 billion. Wall Street was expecting revenue just under $44 billion, the news agency reported.