The head of JP Morgan has told the BBC that there is a higher risk of a serious fall in US stocks than is currently being reflected in the market. He also said in a rare and wide-ranging interview that the US had become a less reliable partner on the world stage.
Jamie Dimon, who is the lead of America’s largest bank said he was “far more worried than others” about a serious market correction, which he said could come in the next six months to two years.
He cautioned he was still “a little worried” about inflation in the US, but insisted he thought the Federal Reserve would remain independent, despite repeated attacks by the Trump administration on its chair Jerome Powell.
Jamie Dimon was in Bournemouth, where he was announcing an investment of about £350m in JP Morgan’s campus there, as well as a £3.5m philanthropic investment in local non-profits.
Chancellor Rachel Reeves said the investment was “fantastic news for the local economy and people who live” in Dorset.
However, on the broader economic picture, he felt there were increased risks US stock markets were overheated.