Several CEOs of the largest U.S. banks have recently expressed concerns about the economic fallout, market volatility and broader uncertainty resulting from President Donald Trump's new trade policies.
Goldman Sachs Group, Inc. (NYSE:GS) CEO David Solomon warned of uncertainty and potential turbulence ahead on the company’s earnings call Monday.
“This uncertainty around the path forward and fears over the potentially escalating effects of a trade war have created material risks to the U.S. and global economy,” Solomon told analysts on the call.
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Solomon also noted that he hears an even “greater sense of short-term concern” from CEOs located outside of the United States.
Last Friday, JPMorgan Chase & Co. (NYSE:JPM) CEO Jamie Dimon pointed out that the analyst community has lowered the consensus S&P 500 growth forecast from 10% to only 5% growth in 2025. He then predicted the forecast to be lowered even further in the near term.
“My guess is that it [will] be zero and negative five probably the next month," Dimon said.
Dimon has also stated that a recession is now a “likely outcome” due to the tariffs, and he expects many companies to withdraw or revise their forecasts because of the unpredictability. He emphasized that while the U.S. remains economically strong, the tariff uncertainty challenges that stability and could have lasting negative consequences.
“Take a deep breath, negotiate some trade deals," Dimon urged the Trump administration last week. "It could get worse if we don’t make progress."
$Bank of America Corp(BAC-N)$. (NYSE:BAC) CEO Brian Moynihan spoke about the effects of economic uncertainty on the mindset of the bank's business-owner clients.
“They’re worried about how this will affect their businesses and where they should invest. And I think that’s slowing down some of their decision paths right now,” he said, adding that some are considering changing growth plans as well.
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