Dimon Warns U.S. Inflation Will Rise, Employment Will Fall

JPMorgan CEO Jamie Dimon has warned that the economic stimulus efforts following the pandemic have largely been exhausted—raising concerns that inflation could rise while employment declines, creating a dilemma for the Federal Reserve, Eleanor Pringle reported for Fortune on June 13, 2025.

Dimon cautioned that rising prices and falling job numbers are becoming a reality. I Photo: J.P. Morgan X

Federal Reserve Chair Jerome Powell has long expressed concern that the Fed’s dual mandate—controlling inflation while supporting maximum employment—could soon face internal conflict.

Dimon now appears to agree, cautioning that rising prices and falling job numbers are becoming a reality.

Speaking at Morgan Stanley’s U.S. Financials Conference, Dimon pointed to the fading effects of pandemic-era economic stimulus: “The consumer had money, wages are pretty good, unemployment is pretty good, they’re spending it… All the extra money from COVID is kinda gone, so the lower-end folks… have normalized,” he said.

While upper-income consumers continue to travel and spend, supported by rising home and stock prices, Dimon warned that the broader mood is mixed.

He cited consumer sentiment data from the University of Michigan, noting the index fell sharply from 71.7 in January to 52.2 by April—coinciding with Donald Trump’s return to the White House.