Jamie Dimon: U.S. Economy Strong, But War and Inflation Risks Loom

According to the Wall Street Journal, JPMorgan Chase CEO Jamie Dimon said the U.S. economy is strong, pointing to healthy corporate profits, low unemployment, and modest borrowing by both businesses and households.

Dimon made these comments in his interview with Alan Murray of the WSJ Leadership Institute. “Good times,” he said.

Dimon also outlined risks to the outlook: unpredictable external conflicts, large government budget deficits, and upward pressure on . Touching on inflation, he said, “It’s been here for five years, folks. It’s stubborn.”

When asked about a possible downturn, Dimon said it was difficult to predict what might trigger it or when it would occur. He noted that the bank had analyzed the risks it could face “in the finest detail,” keeping it prepared.

“Sooner or later, there will be a downturn. Sooner or later, a combination of events that you won’t be able to predict today will trigger it. You can throw out random guesses and act as if you know,” said Dimon.

The Ministry raised its annualized second-quarter GDP growth rate from 1.5% to 2.2%. According to The Wall Street Journal, the increase reflected higher investment, and the continued construction of data centers played a role in this rise.

Dimon had previously linked the development of AI infrastructure to economic growth. Last month, he said that investments across the AI infrastructure ecosystem could rise from about $700 billion this year to $1 trillion next year. He characterized the spending as an important driver of growth and said it “could contribute a little to inflation.”

In the same remarks, Dimon said he hoped price pressures would ease, but warned that there was “a chance they don’t, or even rise a little,” adding that the Fed should continue to defend its 2% inflation target.

At the event, he said that simultaneous capital demands stemming from infrastructure projects, defense spending, and ongoing government deficits had pushed interest rates higher. “There could be a market correction,” he said, though he was uncertain whether AI spending would be the trigger.