JPMorgan's Dimon: The market exhibits an unusual complacency, severely underestimating inflation and stagflation risks.

GateUser-6433627c · 2025-05-20T06:38:08+00:00

JPMorgan Chase CEO Jamie Dimon warned that the market is experiencing an unusual level of complacency, seriously underestimating inflation and stagflation risks. He pointed out that U.S. asset prices are rising, and the credit Interest Spread is overlooking the impact of an economic downturn. Although the U.S. has lost its top credit rating, the stock market is performing well, indicating investors' neglect of risks.

GateUser-6433627c

2025-05-20 06:38:08

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[JPMorgan’s Dimon: The market is experiencing an unusual level of complacency, seriously underestimating the risks of inflation and stagflation] JPMorgan CEO Jamie Dimon warned against complacency in the face of a range of risks, citing inflation, credit Interest Spread, and geopolitical factors. Dimon stated that the likelihood of worsening inflation and stagflation is greater than people realize, and he reminded that asset prices in the U.S. remain very high, adding that the credit Interest Spread does not account for the potential impact of an economic downturn. Even after Moody’s Ratings stripped the U.S. of its last remaining top credit rating last Friday, the S&P 500 index still erased its initial losses on Monday, as traders seemed to shift their focus beyond the downgrade. “People feel good because they haven’t yet seen the effects of the tariffs,” Dimon said. “The market fell 10%, and now it’s up 10%; I think this is a rather unusual complacency.” (Jin Shi)

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