According to a senior investment strategist at JPMorgan Asset Management, expressing his full opinions on U.S. tariffs has been restrained due to concerns about how they would impact his colleagues and the bank. Michael Cembalest, who is experienced in Wall Street, revealed during a webinar titled "The 2025 Tariff Shock" that he had held back his views on how tariffs could affect markets and economies. He described tariffs as a forceful and blunt approach. Cembalest's hesitation in sharing his complete thoughts was highlighted during the webinar, indicating that he had to consider the repercussions of his statements on both the firm and his peers. Although not explicitly mentioning President Donald Trump, Cembalest's reservations were made apparent in the webinar available on the bank's website.
Cembalest mentioned in the webinar that he had to carefully weigh his words to align with the bank's stance on markets and economics, considering the current climate where individuals are being scrutinized for their views and statements. Despite having communicated most of his thoughts during the call, he acknowledged that certain aspects remained unsaid. A JPMorgan spokesperson stated that Cembalest discussed the objectives, potential benefits, and risks associated with the administration's policies.
Cembalest, based in New York, did not provide any additional comments beyond regular business hours regarding his remarks. His caution in expressing his opinions coincides with a period of corporate hesitancy in the United States, as the Trump administration implements executive orders targeting law firms that oppose its policies. These orders aim to limit their interactions with government officials and may lead to the termination of their federal contracts. The orders specifically aimed at law firms representing clients who have legally challenged Trump's decisions or have been involved in investigations related to Trump. The firms have also been criticized for their diversity policies.
Cembalest's recent actions are in line with a report he published on April 2, titled "Redacted: Straight talk from the CEO front lines on Liberation Day." The report had portions discussing tariffs blacked out. In the report, Cembalest hinted at two possible scenarios regarding the tariffs: either trading partners providing concessions to make the tariffs temporary or an escalation of tariff conflicts that could harm the global economy.