Leading US bankers warn of uncertain economic outlook

BlackRock's Larry Fink says country is teetering on brink of a recession

JPMorgan chief executive Jamie Dimon told shareholders the US economy 'is facing considerable turbulence'. AP

JPMorgan Chase chief executive Jamie Dimon has led a chorus of top US bankers concerned about the country's economic outlook.

The US economy “is facing considerable turbulence”, he wrote to shareholders as the bank beat first-quarter estimates on Friday.

“We continue to believe it is prudent to maintain excess capital and ample liquidity in this environment,” he wrote.

JPMorgan Chase – America's largest bank by total assets – reported a net income of $14.6 billion.

Mr Dimon earlier this week warned a US recession would be the “likely outcome” if President Donald Trump maintained his so-called reciprocal tariffs against much of the world.

Mr Trump said he had watched the JPMorgan executive's Fox Business interview before putting most of the tariffs on pause for 90 days.

Other executives who reported quarterly earnings on Friday expressed similar sentiments.

“I think we’re very close, if not in a recession now,” BlackRock chief executive Larry Fink said on CNBC's Squawk on the Street.

Mr Fink's remarks came after BlackRock reported its quarterly earnings came out to $11.30 per share, while net income dipped to $1.51 billion – 4 per cent lower than the same period last year. The investment firm's assets under management rose to $11.5 billion.

“Uncertainty and anxiety about the future of markets and the economy are dominating client conversations,” he wrote in the company's earnings statement.

Wells Fargo chief executive Charlie Scharf said he supports Mr Trump's efforts to “look at barriers to fair trade” for the US, but acknowledged the risks associated with the shift in policy.

“We expect continued volatility and uncertainty and are prepared for a slower economic environment in 2025, but the actual outcome will be dependent on the results and timing of the policy changes,” he wrote.

Bank of New York Mellon Corp chief executive Robin Vince also warned of trouble ahead after the company reported a quarterly revenue of $4.9 billion.

“Looking ahead, we are prepared for a wide range of macroeconomic and market scenarios as the outlook for the operating environment is becoming more uncertain,” he wrote in a statement.