JPM Dimon said the US economy is resilient but warned markets may be underpricing risk

Jamie Dimon of JPMorgan Chase asserts the resilience of the US economy despite a cooling labor market. He highlights strong consumer spending and a generally healthy corporate environment as essential supports for continued economic activity. Although labor markets are softening, Dimon observes that they are not materially deteriorating. He points out that consumer spending remains a key pillar of growth, suggesting households have adapted to higher rates and prices without significant pullbacks. Moreover, Dimon emphasizes that supportive conditions may persist, citing fiscal stimulus, deregulation, and the Federal Reserve’s monetary policy as factors aiding the economy. He warns, however, that markets could be underpricing downside risks, particularly from geopolitical tensions and inflation persisting longer than expected. Elevated asset prices raise concerns about potential volatility if macro circumstances change or policy expectations adjust. While maintaining a cautiously optimistic tone, Dimon highlights the resilience of the current economic conditions, stressing the need for vigilance against tail risks. His commentary underscores a tension in market pricing, leaning toward stability and easing inflation amid warnings from corporate leaders about ongoing geopolitical uncertainty and valuation risks.