Jamie Dimon Warns Markets Could Drop Hard

JPMorgan CEO Jamie Dimon is sounding the alarm on Wall Street, warning that the risk of a significant drop in US stocks is higher than investors seem to believe. In a wide-ranging interview, Dimon told the BBC that he's "far more worried than others" about the possibility of a market correction, which he believes could hit any time in the next six months to two years. "There are a lot of things out there" creating uncertainty, Dimon said, citing geopolitical tensions, rising fiscal spending, and global remilitarization. With so many unknowns, he said, "the level of uncertainty should be higher in most people's minds than what I would call normal."

• Dimon questioned the durability of the current AI-fueled rally, predicting that some of the money invested in AI will be lost. "The way I look at it is AI is real; AI in total will pay off—just like cars in total paid off, and TVs in total paid off, but most people involved in them didn't do well," he said. Some of his skepticism echoes that of the Bank of England, which recently compared the current AI boom to the dot-com bubble of the late 1990s.
• Dimon warned that the US has become "a little less reliable" on the world stage and doubled down on the need for greater military preparedness. "People talk about stockpiling things like crypto, I always say we should be stockpiling bullets, guns, and bombs," he said, adding: "The world's a much more dangerous place, and I'd rather have safety than not."

• On the domestic front, Dimon said he's still "a little worried" about inflation, but expressed confidence in the independence of the Federal Reserve—even as President Trump continues to publicly attack Fed chair Jerome Powell. Dimon said he takes Trump "at his word" that he won't interfere with the central bank.
• Dimon's name has been floated for potential roles in government, including treasury secretary or even president, but he dismissed any political ambitions, saying his focus remains on running JPMorgan. Still, he couldn't resist a quip: "If you gave me the presidency, I'd take it. I think I'd do a good job."
• The Guardian reports that Dimon's remarks follow other warnings about potential trouble ahead. Kristalina Georgieva, head of the International Monetary Fund, said Wednesday that the world economy is holding up surprisingly well amid Trump's trade war, but the full effect of tariffs is "yet to unfold." She warned: "Buckle up: uncertainty is the new normal and it is here to stay."

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