Latest news with #JPMorgan
Yahoo
42 minutes ago
- Business
- Yahoo
JPMorgan CEO reveals what's keeping the American economy strong despite global challenges
JPMorgan Chase CEO Jamie Dimon on Tuesday said that while the U.S. economy has stayed strong through the second quarter of this year, there remain potential stumbling blocks to the economic outlook. Dimon said that the "U.S. economy has remained resilient" and noted that while there are potential boosts coming from the enactment of Republicans' tax and spending package, other headwinds could dampen the economic outlook going forward. "The finalization of tax reform and potential deregulation are positive for the economic outlook. However, significant risks persist — including from tariffs and trade uncertainty, worsening geopolitical conditions, high fiscal deficits and elevated asset prices," Dimon said Tuesday. Dimon said that JPMorgan tends to be measured when it makes projections due to the past crises that emerged and caught many off guard. Jamie Dimon Criticizes Zohran Mamdani As 'Marxist,' Blasts Democrats' Dei Push: 'Big Hearts And Little Brain' "Our forecasting of the future is very complex. You probably heard me say that sometimes it's a complete waste of time. Most people cannot really pick inflection points," he explained. Read On The Fox Business App The CEO of the nation's largest bank also discussed President Donald Trump's dispute with the Federal Reserve and its leadership. Trump has repeatedly called for the Fed to cut interest rates, mocking Federal Reserve Chair Jerome Powell with derisive comments and publicly mulling an effort to fire him. Goldman Sachs Says Undermining Central Bank Independence Has Economic Repercussions The president has said he won't attempt to fire Powell, which he lacks the legal authority to do except for cause, though his allies have suggested a renovation project at the Fed's headquarters that has experienced cost overruns could provide cause for an attempted termination. "The president said he's not going to try to remove Jay Powell," Dimon told reporters on a conference call. "The independence of the Fed is absolutely critical, and not just for the current Fed chairman, who I respect, but for the next Fed chairman." "Playing around with the Fed can often have adverse consequences, absolutely the opposite of what you might be hoping for," Dimon added. Reuters contributed to this report. Original article source: JPMorgan CEO reveals what's keeping the American economy strong despite global challenges Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Business
- Yahoo
Jamie Dimon just sent Donald Trump a warning about meddling with the Fed
Jamie Dimon is warned against messing with Fed independence on Tuesday. Interfering with the Fed could lead to big consequences, Dimon said. Trump and other administration officials have been highly critical of Fed Chair Powell this year. Jamie Dimon is sending President Donald Trump a message: Cool it on haranguing with Jerome Powell to cut rates. On Tuesday, the JPMorgan CEO touched on the feud between Trump and the Fed chair. Dimon said it's important for the central bank to maintain its independence, referring to Trump's threats to fire Powell or announce a new Fed chair months in advance, a move that could undermine Powell's decision-making. "The president said he's not going to try to remove Jay Powell," Dimon said after JPMorgan reported its earnings for the quarter. "The independence of the Fed is absolutely critical, and not just for the current Fed chairman, who I respect, but for the next Fed chairman." "Playing around with the Fed can often have adverse consequences, absolutely opposite of what you might be hoping for," Dimon later added. Trump has made it clear that he isn't happy with Powell, whom he appointed in 2017. The president has repeatedly put pressure on the Fed chief this year to lower interest rates immediately, calling Powell "Too Late," a "major loser," and a "very dumb, hardheaded person" in posts on Truth Social. Trump also said earlier this year that he was considering removing Powell from his post, before he clarified that he had no intention of firing the Fed chair before the end of his term next year. But the president and other members of his administration have continued to lob criticism at Powell. In June, a Wall Street Journal report said that Trump was considering announcing a new Fed chair as soon as this fall. Treasury Secretary Scott Bessent — one of the contenders for the next Fed chief, according to the Journal's report — also floated the idea of a "shadow Fed Chair" in October of last year. The shadow chair would be a Fed Chair announced before the end of Powell's term, who could indicate to markets what to expect after Powell is gone, Bessent told Barron's at the time. National Economic Council Director Kevin Hassett, another reported contender for Fed chair, said on Tuesday that Trump didn't want to fire Powell, but "certainly" could if there was a cause. Lately, the administration has said that one possible cause for Powell's removal could be the renovation of the Fed building in Washington, DC. Russell Vought, who runs the Office of Management and Budget, said Powell's oversight of the work amounted to mismanagement of the central bank. Market pros have warned that meddling with the Fed's independence could have significant consequences on financial markets. That's because the Fed lowering interest rates prematurely could loosen inflation expectations in the economy and lower the credibility of the Fed, making inflation harder to fight in the future. If Trump were to move forward with an early announcement of the next Fed chair, bond yields could actually move higher as investors grow more concerned about the inflation outlook, analysts previously told Business Insider. The next Fed chair also isn't guaranteed to cut rates when their term begins, as the central bank's policymaking committee needs to come to a consensus before making changes to the benchmark rate. Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Malay Mail
an hour ago
- Business
- Malay Mail
Big US banks ride out trade policy swings, see brighter outlook for H2 2025
NEW YORK, July 16 — Large US banks reported results that topped estimates yesterday as executives pointed to American economic resilience and said businesses were adapting to tariff uncertainty. Executives from JPMorgan Chase and Citigroup described US consumers as still fundamentally in good shape despite continued risks to the outlook. Both banks now see a lower risk of recession compared with April, when they last reported results. Top officials with the banks also characterised clients as less frazzled by President Donald Trump constantly changing trade policy compared with April, when financial markets were in turmoil. In the last week alone, Trump has threatened deep tariffs on some two dozen countries and spoken of new levies on copper and pharmaceuticals — announcements that many market watchers remain sceptical will be enacted in light of previous tariff pivots by the US president. 'The corporate community ... has sort of accepted that they just need to navigate through this and are kind of getting on with it,' JPMorgan Chief Financial Officer Jeremy Barnum told reporters on a conference call. Later on a call with Wall Street analysts, Barnum described US consumer spending as still fairly robust. 'We continue to struggle to see signs of weakness,' Barnum said. 'The consumer basically seems to be fine.' Citigroup CFO Mark Mason said businesses had acquired more 'comfort with the uncertainty' compared to earlier in the year. 'The general sentiment has improved a bit if you look at things like the prospect of a recession, that has fallen significantly from what it was earlier in the second quarter,' Mason told reporters on a conference call. Soft landing eyed At JPMorgan, second-quarter profits came in at US$15 billion (RM63.7 billion), down 17 per cent from the year-ago period when results were boosted by a one-time equity item. But that translated into US$4.96 per share, compared with US$4.49 projected by analysts behind higher profits in operating divisions. Revenues were US$44.9 billion, down 11 per cent from the year-ago period. In the most recent quarter, JPMorgan benefited from higher asset management fees, as well as increased trading revenues amid financial market volatility during stretches of the quarter. These aspects helped offset higher technology expenses. JPMorgan chief executive Jamie Dimon said investment banking activity had started slowly in the quarter, 'but gained momentum as market sentiment improved,' resulting in a seven per cent gain. Dimon described the tax cut extensions Trump recently signed into law as 'positive' for the economic outlook, along with 'potential deregulation,' according to a statement. 'However, significant risks persist — including from tariffs and trade uncertainty, worsening geopolitical conditions, high fiscal deficits and elevated asset prices,' Dimon said. 'As always, we hope for the best but prepare the firm for a wide range of scenarios.' During a conference call with reporters, Dimon said the cautious comments related to possible outcomes and were not a prediction. 'The world is kind of pricing in a soft landing,' he said. 'We've been in that soft landing and it may very well continue.' At Citi, profits came in at US$4.0 billion, up 25 per cent from the year-ago level, while revenues rose eight per cent to US$21.7 billion. Profits were boosted by higher markets revenue and investment banking fees, among other areas. Mason described the macroeconomic outlook as improved from April, which points to the 'underlying strength' of the US private sector and capital markets. 'We do anticipate further consumer cooling the second half (of 2025) as tariff effects play through,' Mason said, while adding that 'the global economic performance has been quite resilient.' Shares of JPMorgan were decline 0.8 per cent, while Citigroup rose 3.6 per cent. — AFP
Yahoo
2 hours ago
- Business
- Yahoo
Jamie Dimon Says JPMorgan to Get More Involved With Stablecoins
Jamie Dimon, CEO of global banking giant JPMorgan (JPM), said the bank plans to get more involved in stablecoins, even as he questioned their practical utility compared to traditional payments. "We're going to be involved in both JPMorgan Depositcoin and stablecoins to understand it, to be good at it," Dimon said during the bank's Tuesday earnings call. "I think they're real, but I don't know why you'd want a stablecoin as opposed to just payment." His comments came as stablecoins, a subset of cryptocurrencies with prices tied to predominantly to fiat money like the U.S. dollar, are having a breakthrough moment in the broader financial system. They are increasingly being used as a cheaper, faster alternative for cross-border payments, especially in emerging countries. Looming U.S. regulation provides another tailwind for the sector, with the Senate already having passed the GENIUS Act and the House aiming to vote on the proposal this has been a long-time skeptic of cryptocurrencies. Despite that, the bank has been an early leader in tokenization with its private blockchain network Kinexys, formerly known as Onyx. The bank now settles $2 billion in transactions daily using JPM Coin. It also piloted last month a deposit token, JPMD, on the Base network, a blockchain built by Coinbase that runs on Ethereum. Dimon also suggested that financial technology firms, fintechs in short, are using stablecoins and blockchain tools to edge into traditional banking. "These guys are very smart," he said during the call. "They're trying to figure out a way to create bank accounts and get into payment systems and rewards programs." "We have to be cognizant of that," he said. "Way to be cognizant is to be involved." For example, crypto-powered banking startup Dakota offers cross-border U.S. dollar payments using stablecoins in the backend and has raised $12.5 million to expand its services to over 100 countries, CoinDesk reported.
Business Times
3 hours ago
- Business
- Business Times
US banks JPMorgan and Citigroup see lower recession risk despite tariff fog
[NEW YORK] Large US banks reported results that topped estimates on Tuesday as executives pointed to American economic resilience and said businesses were adapting to tariff uncertainty. Executives from JPMorgan Chase and Citigroup described US consumers as still fundamentally in good shape despite continued risks to the outlook. Both banks now see a lower risk of recession compared with April, when they last reported results. Top officials with the banks also characterised clients as less frazzled by President Donald Trump constantly changing trade policy compared with April, when financial markets were in turmoil. In the last week alone, Trump has threatened deep tariffs on some two dozen countries and spoken of new levies on copper and pharmaceuticals - announcements that many market watchers remain skeptical will be enacted in light of previous tariff pivots by the US president. 'The corporate community ... has sort of accepted that they just need to navigate through this and are kind of getting on with it,' JPMorgan chief financial officer Jeremy Barnum told reporters on a conference call. Later on a call with Wall Street analysts, Barnum described US consumer spending as still fairly robust. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'We continue to struggle to see signs of weakness,' Barnum said. 'The consumer basically seems to be fine.' Citigroup CFO Mark Mason said businesses had acquired more 'comfort with the uncertainty' compared to earlier in the year. 'The general sentiment has improved a bit if you look at things like the prospect of a recession, that has fallen significantly from what it was earlier in the second quarter,' Mason told reporters on a conference call. Soft landing eyed At JPMorgan, second-quarter profits came in at US$15 billion, down 17 per cent from the year-ago period when results were boosted by a one-time equity item. But that translated into US$4.96 per share, compared with US$4.49 projected by analysts behind higher profits in operating divisions. Revenues were US$44.9 billion, down 11 per cent from the year-ago period. In the most recent quarter, JPMorgan benefited from higher asset management fees, as well as increased trading revenues amid financial market volatility during stretches of the quarter. These aspects helped offset higher technology expenses. JPMorgan chief executive Jamie Dimon said investment banking activity had started slowly in the quarter, 'but gained momentum as market sentiment improved,' resulting in a seven percent gain. Dimon described the tax cut extensions Trump recently signed into law as 'positive' for the economic outlook, along with 'potential deregulation,' according to a statement. 'However, significant risks persist - including from tariffs and trade uncertainty, worsening geopolitical conditions, high fiscal deficits and elevated asset prices,' Dimon said. 'As always, we hope for the best but prepare the firm for a wide range of scenarios.' During a conference call with reporters, Dimon said the cautious comments related to possible outcomes and were not a prediction. 'The world is kind of pricing in a soft landing,' he said. 'We've been in that soft landing and it may very well continue.' At Citi, profits came in at US$4.0 billion, up 25 per cent from the year-ago level, while revenues rose eight percent to US$21.7 billion. Profits were boosted by higher markets revenue and investment banking fees, among other areas. Mason described the macroeconomic outlook as improved from April, which points to the 'underlying strength' of the US private sector and capital markets. 'We do anticipate further consumer cooling the second half (of 2025) as tariff effects play through,' Mason said, while adding that 'the global economic performance has been quite resilient.' Shares of JPMorgan were decline 0.8 per cent, while Citigroup rose 3.6 per cent. AFP
