Donald Trump 'In Danger of Not Only Tanking Stock Markets — But Also Sinking U.S. Into Stagflation' Warns America's Top Banker
Donald Trump's bold moves to boost the U.S. economy could caused stagflation, JPMorgan Chase CEO Jamie Dimon has warned.
May 23 2025, Published 2:53 p.m. ET
America’s most powerful banker has warned Donald Trump risks sinking the economy into stagflation.
RadarOnline.com can reveal the uncommon scenario feared by JPMorgan Chase CEO Jamie Dimon was last seen in the U.S. since the 1970s — and is considered WORSE than a recession.
Economy Fears
Dimon says 'there's a chance' stagflation may occur within the U.S.
Stagflation is the combination of economic stag-nation and in-flation. Prices continue to soar at the same time as unemployment rises and economic growth slows — a triple whammy of problems.
It would send stocks down, hitting 401(K)s and other retirement savings, whereas a recession, unemployment increases and the economy shrinks - but the silver lining is that there is little or no inflation.
Speaking on Thursday, Dimon said: "There's a chance that (we'll) have stagflation (in the U.S.)."
Dimon said while he was not making a certain prediction: "We have to be prepared for something like that."
He added: "Global fiscal deficits are inflationary. I think the remilitarization of the world is inflationary.
"The restructuring of trade is inflationary."
At JPMorgan's annual investor's day on Monday, Dimon said that the chances of stagflation returning are probably twice that of what others have projected.
Dimon said the full effect of Trump's aggressive trade policies have yet to be felt.
The billionaire also said that markets were showing an "extraordinary amount of complacency" in the face of the economic threats of Trump's tariffs.
Dimon said the full effect of Trump's aggressive trade policies have yet to be felt.
Dimon is not alone, with a host of major economists also warning that stagflation could return.
"Directionally, it is stagflation," Mark Zandi, chief economist at Moody's Analytics, warned back in March.
"It's higher inflation and weaker economic growth that is the result of policy — tariff policy and immigration policy."
Last month Dimon predicted that the economy was likely headed towards a recession.
This is not the first time Dimon has warned that the U.S. economy is in peril in recent months.
Last month the banker predicted that the economy was likely headed towards a recession.
"Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth," Dimon told investors.
Dimon has run JPMorgan Chase, the largest U.S. bank, for 19 years and is one of the most prominent voices in corporate America.
The bank, which has prominent retail as well as investment arms, has become the world's biggest and most powerful bank with $4trillion in assets under Dimon.
The banker has a net worth of $2.5billion, according to Forbes.
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Dimon, who is worth $2.5billion, recently hit out at the working from home culture.
Earlier this year, Dimon caused division among bankers at his firm after demanding his staff return to the office five days a week.
While speaking at Stanford University's Graduate School of Business, Dimon said he's "had enough" of staff working from home and that it simply "doesn't work" in his business.
He previously said: "I completely respect people that don't want to go to the office all five days a week. That's your right. It's my right. It's a citizen's right.
"But they should respect that the company is going to decide what's good for the clients, the company, etc., not an individual."
