Dimon challenges Trump’s economic agenda and warns of instability

Jamie Dimon, Chief Executive Officer of JPMorgan Chase, has issued a stark warning about key elements of current US economic policy during the World Economic Forum in Davos. In an interview with the editor-in-chief of The Economist, Dimon openly criticized tariff policies, political interference with the Federal Reserve and populist proposals targeting the credit market. He cautioned that such measures could trigger a dangerous spiral of declining confidence in the US dollar, capital outflows, rising interest rates and increasing difficulties in financing the country’s fiscal deficits.

Dimon also emphasized the geopolitical importance of a strong partnership with Europe and the NATO alliance. A stable and economically resilient Europe, he argued, is essential for the long-term security and prosperity of the United States. Economic isolationism and protectionism, in his view, are not viable strategies for leading global economies.

On artificial intelligence, Dimon compared its transformative potential to the advent of electricity or the internet, while warning about the speed of change. He confirmed that JPMorgan is likely to employ fewer people within the next five years as automation advances. As an example, he pointed to the roughly two million truck drivers in the United States whose jobs could be threatened by autonomous driving technologies. If this transition occurs too rapidly without adequate policy responses, Dimon warned, it could lead to significant social unrest.

Addressing US domestic policy and migration, Dimon advocated a merit-based immigration system. While acknowledging the need for border control, he criticized the current approach and called for legal pathways for workers in sectors such as healthcare and agriculture, where labor shortages remain acute.

Dimon was particularly critical of a proposal associated with Donald Trump to cap credit card interest rates at ten percent. Such a move, he said, would amount to an “economic catastrophe,” as banks would be unable to price credit risk adequately. The result would be that approximately eighty percent of Americans could lose access to credit. The consequences would be felt not by banks, but by millions of consumers, as well as retailers, restaurants and local governments, as everyday bills and expenses could no longer be paid.

Toward the end of the interview, Dimon was asked whether fear prevents the American business community from openly criticizing Donald Trump. His response was brief and unequivocal: »I think that’s absolutely clear.«

SK