Jamie Dimon Says Markets Are Not Pricing in Geopolitical Risk (Full Interview)

JPMorgan Chase & Co. chief Jamie Dimon can’t rule out the US economy will fall into stagflation as the country faces huge risks from geopolitics, deficits and price pressures.
“I don’t agree that we’re in a sweet spot,” the chief executive officer said in a Bloomberg Television interview from the lender’s Global China Summit in Shanghai. Risks include huge deficits, inflationary factors, and geopolitical risk, he said, adding that the US Federal Reserve is doing the right thing to wait and see before they decide.
Fed officials have held interest rates steady this year amid a solid economic backdrop and uncertainty about government policy changes — like tariffs — and their potential impact on the economy. Policymakers said earlier this month they see an increased risk of confronting both higher inflation and unemployment. 
Earlier this month, the US and China agreed to sharply reduce tariffs for 90 days to hammer out a new agreement, in what promises to be difficult rounds of talks between Washington and Beijing. US President Donald Trump’s tariffs on China will likely remain at a level expected to severely curtail Chinese exports after the 90-day truce, analysts and investors say. 
“I don’t think the American government wants to leave China,” Dimon said. “I hope they have a second round, third round or fourth round and hopefully it will end up in a good place.”
Trump’s chaotic tariff announcements and efforts to shrink or shutter government agencies have stoked concerns about trade, inflation, unemployment and a potential recession. Companies are pausing expansion, including lucrative mergers and acquisitions handled by Wall Street dealmakers, bank executives have said.
The biggest US bank also launched its “Center for Geopolitics” this week with research on Russia and Ukraine, the Middle East and global rearmament. 
The unit “is both for us, and it’s also to educate clients,” Dimon said. “Clients ask us all the time, what should we do about this country. How do you look at risk?” 
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