Jamie Dimon fears overvalued stock market and AI bubble
JP Morgan CEO Jamie Dimon has raised concerns that US stock markets are at serious risk of a correction within the next six months to two years. In a rare interview with the BBC, Dimon said he is “far more worried than others” about the growing possibility of a significant fall in stock prices. He cited geopolitical instability, excessive fiscal spending, and global militarization as factors contributing to rising uncertainty.
Dimon warned that market optimism may not fully reflect the real risks ahead, especially as investment continues to flow heavily into artificial intelligence. While he acknowledged that AI technology is “real” and will eventually “pay off,” he compared the current enthusiasm to the dot-com bubble of the late 1990s. “Most people involved in them didn’t do well,” he added, suggesting many AI investments could lead to losses.
Geopolitics, inflation, and Fed independence
Dimon expressed concern about the global security environment and argued that the U.S. must focus more on military preparedness.
He also noted his ongoing worries about inflation, but said he trusts the Federal Reserve will maintain its independence, despite pressure from former President Trump. Trump has frequently criticized Fed Chair Jerome Powell, calling him a “moron” and a “numbskull” for not lowering rates faster. Still, Dimon said he is willing to take Trump “at his word” that he won’t interfere with the central bank’s autonomy.
US reliability and shifting global alliances
Dimon admitted that the US had become a “little less reliable” on the world stage. However, he credited the Trump administration for forcing Europe to reconsider its role in NATO and address economic competitiveness. He also hinted at progress in reducing U.S. tariffs on India, which were imposed due to its continued trade with Russia. “I’ve spoken to several of the Trump officials who say they want to do that,” he said of a potential trade agreement.
His comments come during a visit to JP Morgan’s Bournemouth campus in the UK, where the bank is investing £350 million and launching a £3.5 million philanthropic program. Dimon praised UK Chancellor Rachel Reeves, calling her performance “terrific” and expressing optimism about the UK government’s innovation policies.
Political speculation and leadership vision
Although Dimon’s name has been floated as a potential Treasury Secretary or even a presidential candidate, he dismissed such ambitions, saying his priority remains with JP Morgan. “It’s not on the cards,” he said. However, he added with a grin, “If you gave me the presidency, I’d take it. I think I’d do a good job.”
