Jamie Dimon, the chairman and chief executive officer of JPMorgan Chase, warned that the U.S. stock market faces a heightened risk of a significant correction, saying he is "far more worried than others" about the possibility of a downturn in the next six months to two years.
"I would give it a higher probability than I think is probably priced in the market and by others," Dimon told the BBC in an interview published Wednesday. "So if the market's pricing in 10%, I would say it is more like 30%."
Dimon pointed to a range of global and domestic factors driving uncertainty, including geopolitical tensions, fiscal spending, and the remilitarization of the world. "All these things cause a lot of issues that we don't know how to answer," he said, emphasizing that the level of uncertainty "should be higher in most people's minds than what I would call normal."
The comments mark the latest in a series of warnings from the head of America's largest bank, who has repeatedly flagged that investors may be underestimating systemic risks. Dimon said he is concerned that markets are overheated, particularly following the run-up in valuations linked to artificial intelligence companies.
He also expressed mild concern about inflation, while reiterating confidence in the Federal Reserve's independence, despite mounting criticism of Fed Chair Jerome Powell from the Trump administration. Dimon has previously said the long-term effects of tariffs, immigration policies, and fiscal spending decisions under President Trump remain uncertain.
His remarks came amid a broader wave of caution from global financial leaders. At the Milken Institute in Washington, International Monetary Fund Managing Director Kristalina Georgieva told attendees that while the world economy has shown resilience to Trump's trade war, "global resilience has not yet been fully tested. And there are worrying signs the test may come."
"Buckle up: uncertainty is the new normal," Georgieva said, underscoring the fragile balance facing global markets.
