Payne Capital Management President Ryan Payne discusses the threat of a recession while President Donald Trump sticks to his price plan on Varney & Co.
JPMorgan Chase CEO Jamie Dimon said in a letter to the shareholders on Monday that President Donald Trump’s prices should “increase inflation” on foreign and national products, and has raised concerns about their impact on American economic alliances.
“Whatever you think of the legitimate reasons for the newly announced prices – and, of course, there are – or the long -term effect, good or bad, there are probably important short -term effects,” wrote Dimon in his letter, which marked its first public comments on Trump’s prices.
“As for the short term, we will probably see the inflationary results, not only on imported products but on internal prices, and input costs increase and demand increases on interior products. How this takes place on different products will partially depend on their recession remains in question, but it will slow growth,” he explained.
He then wrote that there are “many uncertainties surrounding the new pricing policy”, including the reprisals of American trade partners, which could have an impact on economic prospects, adding that some of these negative effects will worsen over time in a difficulty in reissue and should therefore be resolved earlier.
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The CEO of JPMorgan Chase, Jamie Dimon, published his annual letter on Monday, which contained warnings about the impact of prices. (Al Drago / Bloomberg via Getty Images / Getty Images)
“Potential reprisal actions, including on services, by other countries, the effect on trust, the impact on investments and capital flows, the effect on business profits and the possible effect on the US dollar,” he said.
“The more quickly, this problem is solved, better because some of the negative effects increase cumulatively over time and would be difficult to reverse. In the short term, I see this as a large additional straw on the back of the camel.”
“I hope that after negotiations, the long-term effect will have positive advantages for the United States,” said Dimon. “My most serious concern is how it will affect America’s long -term economic alliances.”
Fed Chari Powell says the prices likely to cause an increase in inflation could be persistent
President Donald Trump announced the prices on American trade partners last week, which dropped the markets. (Chip Somodevilla / Getty Images / Getty Images)
Dimon wrote that the United States “should remember that other nations have choices, in the short term and long-term, and they will make these choices in their own interest according to the economy, security and reliability”.
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“The United States has no commercial contracts with some of its closest allies, many of which have signed trade agreements with China. We should be more actively looking for free commercial actions (and, of course, fair), in particular with strong allies such as Australia, Japan, the United Kingdom and – We hope one day – the European Union,” Dimon wrote. “These can be made in a clearly beneficial way for both sides.”
