JPMorgan Warns U.S. Economy May Be Slowing Behind the Headlines

Despite encouraging job numbers on the surface, JPMorgan Chase’s chief global strategist David Kelly says the U.S. economy is quietly losing momentum.

In a recent CNBC interview, Kelly cautioned that beneath the positive headline figures lies a broader trend of economic softening that many are overlooking.

While May’s payroll report showed a gain of 139,000 jobs and a stable 4.2% unemployment rate, Kelly noted that revisions to previous months paint a less optimistic picture. The Labor Department lowered March and April’s job gains by 95,000, and the Household Survey—a separate but often telling indicator—recorded a massive drop of over 600,000 jobs last month.

“That survey is volatile, but it’s still a warning sign,” Kelly said. “We’re averaging just 124,000 new jobs per month in 2025 so far, down from 168,000 in 2024. The slowdown is happening—it’s just not obvious in the headline numbers.”

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He added that misleading trade figures and quirks in GDP calculations are masking the broader economic deceleration.

Supporting this view, PNC Bank highlighted a concerning development in labor force participation. According to the Pennsylvania-based bank, the number of adults working or seeking work shrank by 625,000 in May—essentially offsetting job gains and suggesting growing discouragement among potential workers.

While economic headlines remain upbeat, Kelly’s message is clear: the underlying data tells a different story, and signs of strain are beginning to emerge across the economy.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.