JPMorgan Chase [NYSE:JPM] just had one of its best quarters on record.<\/p>\n
The nation\u2019s largest bank reported a 13% increase in its net income to $16.5 billion in the first quarter of 2026, as well as a 10% revenue increase to $50.5 billion (1).<\/p>\n
And yet, JPMorgan CEO Jamie Dimon used the bank\u2019s earnings release on April 13 to highlight an \u201cincreasingly complex set of risks\u201d \u2014 like geopolitical tensions around the war in Iran, trade uncertainty and elevated asset prices \u2014 that persist despite the healthy economic growth.<\/p>\n
\u201cWhile we cannot predict how these risks and uncertainties will ultimately play out, they are significant and they reinforce why we prepare the firm for a wide range of environments,\u201d Dimon said in a recent statement, CNBC reports (2).<\/p>\n
Dimon\u2019s Q1 comments line up with the concerns he laid out in his annual shareholder letter on April 6, where he warned that several big risks are still building beneath the surface of the economy (3), comparing them to \u201ctectonic plates<\/a>\u201c that keep shifting until they collide.<\/p>\n He pointed to Iran, Ukraine, tariff-related trade uncertainty, big global deficits and high asset prices as the main pressure points. Energy is a big part of the story, too. The conflict in Iran has already pushed oil prices higher, and Dimon warned that if energy costs stay elevated, inflation could start creeping up again. That\u2019s the \u201cskunk at the party<\/a>,\u201d as he put it.<\/p>\n \u201cAnd it could happen in 2026 \u2026 inflation slowly going up, as opposed to slowly going down,\u201d said Dimon. \u201cThis alone could cause interest rates to rise and asset prices to drop.\u201d<\/p>\n On one hand, consumers are still spending. Debit and credit card sales at JPMorgan increased by 9% year over year to $487.6 billion in Q1, and active mobile customers grew by 7%, which suggests households haven\u2019t meaningfully pulled back on spending just yet (4).<\/p>\n But on the flip side, many Americans are still struggling. JPMorgan\u2019s credit card charge-off rate \u2014 the chunk of balances the bank writes off as unrecoverable \u2014 hit 3.47% in Q1, up from 3.14% in the previous quarter (4). This means more Americans are taking on credit card debt and falling behind on payments that they can\u2019t pay back.<\/p>\n Story Continues <\/p>\n Meanwhile, JPMorgan isn\u2019t the only one seeing this trend. The Federal Reserve Bank of New York has been tracking rising delinquency rates on household debt for several quarters now \u2014 with credit card balances and late payments still way above pre-pandemic levels (5).<\/p>\n JPMorgan also pointed out that high-income households are carrying most (40%) of consumer spending (6), and lower-income folks \u2014 who feel energy costs and inflation the hardest \u2014 are already starting to pull back.<\/p>\n Read More: This $1B private real estate fund is now accessible to non-millionaires. Start investing with just $10<\/a><\/p>\n When the head of America\u2019s biggest bank warns that tough times may be ahead, you\u2019d be wise to pay attention. With that in mind, there are a few things you could do while things are still holding steady.<\/p>\n For starters, prioritize paying off your high-interest debt, particularly your credit card balances. Credit card debt can get a lot more dangerous during a period of stagflation<\/a> \u2014 slow economic growth that\u2019s coupled with high unemployment and rapid price increases \u2014 so if Dimon\u2019s warning is to be believed, you\u2019d be wise to pay off this debt before the tough financial times potentially kick in.<\/p>\n Dimon is also worried about sky-high asset prices, CNN reports (7). \u201cMy anxiety is high over it,\u201d said Dimon. \u201cI\u2019m not assuaged by the fact that asset prices are high. In fact, I think that adds to the risk.\u201d<\/p>\n He believes that growing assets could drop fast, which could spook investors and send everyone rushing to cash out. Stock positions bought at peak prices also typically face sharp drops and long recovery periods that often don\u2019t show up until it\u2019s too late.<\/p>\n You should also think about building up your emergency fund<\/a>. The standard target is to keep three-to-six months of living expenses (rent, food, bills, etc.) in a liquid savings account that you can access easily. Cash on hand gives you financial flexibility if economic conditions make a sudden turn for the worse.<\/p>\n Americans have kept spending stronger than expected, but JPMorgan\u2019s access to real-time consumer data shows the bank is quietly preparing for tough times ahead. The strong economic performance so far doesn\u2019t mean that the economy is invulnerable.<\/p>\n Join 250,000+ readers and get Moneywise\u2019s best stories and exclusive interviews first \u2014 clear insights curated and delivered weekly. Subscribe now.<\/a><\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines<\/a>.<\/p>\n U.S. Securities and Exchange Commission (1)<\/a>; CNBC (2)<\/a>; JPMorgan Chase (3)<\/a>, (4)<\/a>; Federal Reserve Bank of New York (5)<\/a>; J.P. Morgan Asset Management (6)<\/a>; CNN (7).<\/a><\/p>\n This article originally appeared on Moneywise.com<\/a> under the title: ‘Increasingly complex set of risks’: Dimon sends warning on the US economy, says Americans shouldn’t get too comfortable<\/a><\/p>\n This article provides information only and should not be construed as advice. It is provided without warranty of any kind.<\/p>\n","protected":false},"excerpt":{"rendered":"JPMorgan Chase [NYSE:JPM] just had one of its best quarters on record. 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