On Tuesday, JP Morgan’s CEO Jamie Dimon remarked that the US economy appears to be “weakening.” This comment came after the Labor Bureau reported substantial cuts to its job estimates for the year ending March 2025.
During an interview with CNBC, Dimon noted that a “large revision” from the Bureau of Labor Statistics would potentially trim non-farm payroll figures, influencing US growth by about 911,000 jobs.
“I think the economy is weakening,” he stated at the event. “It’s uncertain whether we’re moving towards a recession or just seeing a general weakening.”
Dimon elaborated, mentioning various elements currently affecting the economy, including reduced consumer spending despite strong corporate earnings.
The seasoned CEO also anticipated that the Federal Reserve would “probably” lower key interest rates when they convene later this month.
Sal Guatieri, a senior economist at BMO Capital Markets, commented that the revision presents “fewer portraits of the job market than initially thought.” He noted it doesn’t fully reflect developments since March, but it implies the labor market lacks momentum as it approaches the possibility of a trade war.
In July, figures indicated that employment growth had stalled, with only 73,000 jobs added. This situation led President Donald Trump to dismiss Labor Statistics Director Erica Mantel, accusing her of manipulating data for political gain.
Recently, the department reported a mere 22,000 jobs added in August, attributing this unpredictability to the tax on imports, which generated significant uncertainty and made businesses hesitant to hire.
On a somewhat positive note, late last month, the Bureau of Economic Analysis indicated that the economy grew by 3.3% in the second quarter of 2025, marking a solid recovery from a 0.5% decline in the initial quarter of the year.
