Jamie Dimon says he's hoping Trump's trade methods work but fears negative outcomes
J.P. Morgan chief executive officer Jamie Dimon said that he feared the administration's trade policies could derail the economic progress it has made.
"I'm a little worried it could create negative outcomes," Dimon said Monday on CNBC's " Closing Bell ." "I think it could offset some of the benefits" of the tax overhaul and other measures, he said.
When asked what the biggest threats to the economy were, Dimon named the escalating trade dispute between the U.S. and China -- "if the skirmish becomes more of a war" -- and the unwinding of central banks' quantitative easing efforts. The administration is looking at imposing another round of tariffs on $200 billion in Chinese goods. Dimon also said that he told the administration that he and other business leaders disagreed on the tactics, but that President Donald Trump "obviously doesn't agree with us."
Dimon, 62, is the longest-tenured of CEOs leading a major U.S. bank. Once his friend, Goldman Sachs' Lloyd Blankfein, steps down in October, he will also be the only bank CEO still working to have steered his firm through the financial crisis. Given Dimon's track record, investors and analysts often track his every word, from media appearances to conferences to his annual investor letter.
Dimon said Monday that he and J.P. Morgan's board believes there are several executives who could eventually replace him as CEO in about five years.
Apart from the trade dispute, Dimon has been consistently optimistic about the strength of the U.S. economy and the prospects for banks. During a conference call with analysts this month after posting record second-quarter profit of $8.32 billion, he said there weren't a lot of things out there that could derail growth, which has been accelerating.
"Finally, people are going back to the workforce," Dimon said. "The consumer balance sheet is in good shape. Capital expenditures are going up. Household formation is going up. Homebuilding is in short supply. The banking system is very, very healthy compared to the past."
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