The US economy is facing a slowdown currently but the situation is unlikely to worsen and turn into a recession going forward, said Jamie Dimon, chairman and CEO of JPMorgan Chase.

"Trade issues have led to a lot of questions like when they (investors) should invest, how they should invest, etc. and so investments have slowed down, which will probably slow down the economy as well. However, that does not mean we are in a recession, it just means we are only in a slowdown,” he said in an interview with CNBC.

“On the business side the sentiment has dropped dramatically in confidence, capex has dropped and a lot of this is around very complex geopolitical issues and in particular trade," he added.

On three rate cuts by US Fed this year, he said, “Fed is a very powerful institution, they have got a lot of tools at their disposal including their voice, their capability, and their ability to act strong and tough."

"Fed should provide permanent fixes and not temporary ones but it is important for the American public to realise that Fed action is not about what is good for banks, this is not about regulations but this is about the proper functioning of markets," he added.