Jamie Dimon says there are two big risks to the US economy – even as stocks rip higher

JPMorgan CEO Jamie Dimon on Wednesday highlighted two significant risks to the US economy. 

The veteran banker described the economy as ‘resilient,’ citing low unemployment and strong consumer spending.

‘Businesses are more optimistic about the economy, and they are encouraged by expectations for a more pro-growth agenda [under Donald Trump],’ he told investors during an earnings call.

But Dimon warned of challenges. He cautioned that inflation still poses a risk of remaining high – which eats into families’ budgets, as well as hitting businesses. 

He also emphasized the ongoing dangers of geopolitical instability, calling the current environment ‘the most dangerous and complicated since World War II.’ 

His comments came on the same day US stocks ripped higher for the biggest daily gain since Trump go elected. 

All three major indexes registered their biggest daily percentage gains in more than two months. 

Lower-than-expected December core inflation data and solid earnings from major American banks, including JPMorgan, fueled the rally. 

America’s most famous banker warned that there are two major threats to the US economy

Dimon has previously warned about the knock-on effects of global conflicts and tensions on the US economy. 

In October he warned that global ‘conditions are treacherous and getting worse.’

‘As always, we hope for the best but prepare the firm for a wide range of scenarios,’ Dimon said on Wednesday.

Later on Wednesday it was announced that Israel and Hamas had agreed a ceasefire in Gaza after fifteen months of war. 

The news, announced by mediator Qatar, has raised hopes of an end to the devastating conflict that has rocked the Middle East.  

Dimon’s comments came as JPMorgan posted its biggest-ever annual profit, beating Wall Street expectations. 

The bank, the largest in the US by assets, made $58.5 billion in 2024, $14 billion of which it generated in the final quarter, a 50 percent rise from the same period a year before. 

Several other large US banks also reported soaring profits.

Israel and Hamas have agreed to a ceasefire deal and hostage release, mediators announced on Wednesday

Israel and Hamas have agreed to a ceasefire deal and hostage release, mediators announced on Wednesday

Consumer prices were up 2.9 percent from a year earlier in December, up slightly from the month prior

Consumer prices were up 2.9 percent from a year earlier in December, up slightly from the month prior

Profits for 2024 at Goldman Sachs were up by 68 per cent to £11.7billion.

The investment bank’s quarterly profit of £3.4billion was the biggest for more than three years.

Wells Fargo boss Charlie Scharf said: ‘We feel optimistic about where we are going into 2025.’

It revealed its annual profit climbed 3 per cent to £16.1billion.  

Citi reported fourth quarter profits of $2.9 billion, compared with a loss of $1.8 billion during the 2023 quarter.

On Wednesday morning, it emerged that consumer prices were up 2.9 percent from a year earlier in December. They posted the largest monthly increase in nine months.

But a key measure that excludes highly volatile good like food and energy was down – which pleased Wall Street.

The inflation data released Wednesday by the Bureau of Labor Statistics has been seen by some as the most important in years, as it could provide an indication as to the path the Federal Reserve may take in 2025.

This, in turn, will affect Americans’ credit card rates, car loans, 401(K) retirement accounts and mortgages.

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