‘I’m Far More Worried’: JP Morgan CEO Jamie Dimon Warns of Sharp US Stock Market Fall Amid AI Boom

America’s top banker, Jamie Dimon, has issued a stark warning that US stock markets could face a serious downturn in the coming years. Speaking to the BBC, the JP Morgan Chase chief said he was “far more worried than others” about an impending correction that could hit markets within six months to two years.

“There is a higher risk of a serious fall in US stocks than is currently being reflected in the market,” Dimon said, adding that “a lot of things out there” are creating an atmosphere of deep uncertainty.

Dimon, who heads America’s largest bank, said multiple factors, including rising geopolitical tensions, heavy fiscal spending, and global militarization, were clouding the economic outlook. “All these things cause a lot of issues that we don’t know how to answer,” he noted. “So I say the level of uncertainty should be higher in most people's minds than what I would call normal.”

AI Frenzy and Market Overheating: Lessons from the Dot-Com Boom
A significant part of recent stock market gains has been fueled by the surge in artificial intelligence (AI)-related investments. However, Dimon echoed cautionary tones similar to those voiced by the Bank of England earlier this week, which compared the current AI-driven boom to the late-1990s dot-com bubble.

“The way I look at it is AI is real, AI in total will pay off,” Dimon said. “Just like cars in total paid off, and TVs in total paid off, but most people involved in them didn’t do well.”
On Wednesday, the Bank of England warned that AI tech valuations “appear stretched” and that the risk of a “sharp correction” in these stocks was rising. Dimon added that while AI would revolutionize industries, “some of the money being invested in AI will probably be lost.”

US Becomes a ‘Less Reliable’ Partner on the Global Stage
In his wide-ranging BBC interview, Dimon also reflected on America’s evolving global reputation, suggesting that the US has become a “little less reliable” as a partner. He acknowledged that while some Trump administration policies were controversial, they had inadvertently pushed European nations to strengthen their own defense and competitiveness.
“The US had become a little less reliable,” Dimon said. “But some of the Trump administration's actions pushed Europe to act on underinvestment in NATO and its lack of economic competitiveness.”

Geopolitical Risks: ‘Stockpile Bullets, Guns and Bombs’
Dimon has increasingly spoken about global security concerns, including the risks of military conflict. In his annual shareholder letter earlier this year, he warned that the US could run out of missiles in just seven days during a potential war in the South China Sea.

Reiterating his views, he told the BBC, “People talk about stockpiling things like crypto, I always say we should be stockpiling bullets, guns and bombs. The world's a much more dangerous place, and I'd rather have safety than not.”

Inflation Concerns and Federal Reserve Independence
Despite lingering inflation concerns in the US, Dimon said he believed the Federal Reserve would remain independent, even amid repeated attacks from former President Donald Trump on Fed Chair Jerome Powell.

“I’m still a little worried about inflation,” Dimon said, adding, “but I think the Federal Reserve will remain independent.”
He also commented on Trump’s earlier criticisms of Powell, who was called a “moron” and a “numbskull” by the former president for not cutting interest rates fast enough. Dimon said he would take Trump “at his word” that he would not interfere with the central bank’s independence if re-elected.

‘Fantastic News’: £350 Million UK Investment Unveiled
Dimon’s remarks came during a visit to Bournemouth, where JP Morgan announced a £350 million investment in its campus and a £3.5 million philanthropic donation to local non-profit organisations.

Chancellor Rachel Reeves hailed the announcement as “fantastic news for the local economy and the people who live in Dorset.”
Before the interview, Dimon appeared at a town hall event at the Bournemouth campus, drawing cheers from employees as he greeted them in an open-collar shirt and jeans — “cutting a figure more akin to an off-duty rock star than a bank CEO,” as the BBC described.

Dimon Praises UK Reforms, Sees Promise in Innovation
Dimon also shared his views on the UK’s economic outlook, expressing confidence in Chancellor Reeves’ fiscal approach. “Rachel Reeves is doing a terrific job,” he said, adding that he was optimistic about the government’s efforts to boost innovation and reduce excessive regulation.

India-US Trade Relations: A Deal in the Works
In a surprising reveal, Dimon hinted that trade negotiations between India and the US could soon yield a breakthrough. He said the two countries were close to reducing additional tariffs that had been imposed as a penalty for India’s continued trade with Russia, especially its oil purchases.

“In fact, I've spoken to several of the Trump officials who say they want to do that, and I've been told that they are going to do that,” Dimon said, adding that he wanted to “bring India closer.”

Political Speculation: Will Dimon Run for Office?
Dimon’s prominence in the financial world has long fueled speculation about a possible shift into politics. Billionaire investor Bill Ackman once said he would make an “incredible choice” for US Treasury Secretary, and others have floated his name as a potential presidential candidate.

Asked directly about his political ambitions, Dimon laughed off the rumors. “It wasn’t on the cards,” he said. “If you gave me the presidency, I’d take it. I think I’d do a good job,” he joked, before reaffirming his focus on “keeping JP Morgan a healthy and vibrant company.”

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(With Inputs From BBC)