JPMorgan Chase & Co. CEO Jamie Dimon urged critics to “get over” concerns about President Trump's tariff proposals, but said the U.S. stock market is “inflated in some ways.” ” he said.
In an interview with CNBC Wednesday at the World Economic Forum in Davos, Switzerland, Dimon warned investors about the risks of rising deficit spending, persistent inflation and geopolitical tensions.
“Asset prices are skyrocketing no matter how you look at them. They're in the top 10 or 15 percent of historical valuations,” Dimon said.
The 68-year-old CEO said he was talking specifically about the U.S. stock market, which has seen record gains during a multi-year bull market.
The S&P 500 index rose more than 20% annually in both last year and 2023. It was the first time in 25 years that the U.S. stock market had seen consecutive gains of this magnitude. Mr. Dimon even said last year that JPMorgan stock was too expensive.
Dimon also noted that parts of the bond market, such as the nation's bonds, are “at all-time highs.”
“Yes, prices are going up. You have to have pretty good results to justify that price,” Dimon said at the conference. “Having a growth-promoting strategy can help you achieve that, but there are also downsides, and they can surprise you.”
Meanwhile, Dimon slammed critics of President Trump's proposed massive tariffs on China, Mexico and Canada, telling them to “stop it.”
Dimon said tariffs can be either an “economic tool” or an “economic weapon” depending on how they are used.
He added: “I think in the grand scheme of things, even if there's a little bit of inflation, if it's good for national security, then so be it.” “I mean, get over it.”
On his first day in office, President Trump doubled down on his threat to impose huge tariffs, including a 10% tariff on imports from China and a 25% tariff on goods from Mexico and Canada, effective February 1.
Economists and business leaders have warned that tariffs could reignite inflation, especially when combined with mass deportations.
But Dimon suggested tariffs could be used as a negotiating tool to “bring people to the table,” suggesting more confidence in Trump's plan. He said he believes the Trump administration is using threats in this way.
This is not the first time Mr. Dimon has endorsed Mr. Trump, saying shortly after his election victory that Wall Street bankers were “dancing in the streets” in hopes that Mr. Trump would loosen industry regulations. .
If the threat were simply a barter tool, as Mr. Dimon suggested, the U.S. could reduce tariffs on China, Mexico and Canada, or impose no new tariffs at all.
“We're going to figure it out,” Dimon said.
During his first term, President Trump imposed tariffs on products such as solar panels and washing machines, as well as materials such as steel and aluminum. It also increased tariffs on products from China.
Mr. Dimon has long been reluctant to claim victory over inflation, even as he takes a more optimistic view of the tariff proposal.
In 2022, the CEO who built JPMorgan Chase & Co. into the nation's largest bank in terms of both assets and market valuation has warned that a “hurricane” is headed toward the U.S. economy.
“We're a little more cautious on a lot of topics,” Dimon said at the World Economic Forum. “What I'm a little concerned about is deficit spending. It's a global problem, it's not just an American problem.”
He also stood by his previous statements about inflation and predicted that it could continue.
“'Will inflation go away?' I don't really know,” Dimon said.
He said he was “very concerned about how global concerns such as the Ukraine war, tensions in the Middle East and the threat from China will impact the world over the next 100 years.”
