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JPMorgan CEO Jamie Dimon Talks Recession Risk, Trade With China In Davos

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JPMorgan CEO Jamie Dimon Talks Recession Risk, Trade With China In Davos

Speaking to CNBC from the sidelines of the World Economic Forum in Davos, Switzerland, JPMorgan Chase & Co. (NYSE: JPM) CEO Jamie Dimon said there is a path for the U.S. economy to enter a recession, although it is not yet known when this might occur.

What Happened

The economy continues to grow at a stable 2-2.5 percent, and this can "keep on going on for a while," but under one condition, Dimon told CNBC.

The world is full of geopolitical "noise" ranging from Federal Reserve policy to Brexit, and if left unchecked, it can cause a slowdown or even a recession, he said. 

While Dimon is unsure whether a recession will come next year or the year after, he said "the range of possibilities is broader and the range of bad outcomes is increasing."

The other side of the story holds true: an unexpected tailwind could return the U.S. economy to 3-percent growth, the bank CEO said. 

Dimon expressed a desire for politicians to do a better job in order to sustain a 3-percent growth rate. For instance, the government needs to enact policies that are "well-done and explained to the American public as opposed to slogans," he told CNBC. 

Dimon On China

The U.S. relationship with China will be the most important geopolitical relationship over the next 100 years, Dimon said.

The Trump administration is right in raising "very serious" trade issues with China, he said, adding that it's encouraging that both countries want to resolve outstanding concerns.  

At the very least, the two sides will reach "agreements in principle" ahead of the March 1 deadline, in Dimon's estimation. 

A more permanent deal between the two sides will likely be reached and include a resolution on the how intellectual property rights will be treated, Dimon said. 

The Chinese government also needs to acknowledge it does not have the right to unfairly use its state-owned enterprises to "dominate industries against other countries around the world," he said. 

The Trump administration's grievances against China are not unique, Dimon said, adding that Davos attendees from Mexico, Japan and Europe all "feel this needs to be fixed."

Related Links:

JPMorgan Q4 Earnings Print Misses Expectations

Don't Call The Trade War A Trade War, Says JPMorgan Chase CEO Jamie Dimon

Screenshot courtesy of CNBC. 

Posted-In: China Donald Trump Jamie Dimon trade warPolitics Media General Best of Benzinga

 

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