Jamie Dimon Warns on Debt, Geopolitics, and the ‘Enemy Within’ in Stark Reagan Forum Interview

JPMorgan Chase CEO Jamie Dimon offered his latest round of unsparing commentary during a wide-ranging interview at the Reagan National Economic Forum on Friday, sounding the alarm on everything from the fragility of the U.S. bond market and rising federal deficits to escalating geopolitical tensions and what he dubbed “the enemy within.” The tone was familiar: urgent, unsentimental, and punctuated by tough-love policy prescriptions. While his firm continues to thrive amid economic crosscurrents, Dimon suggested that American leadership—both public and private—is falling short in the face of generational challenges.

On the economy, Dimon struck a pragmatic but ominous note. He reiterated JPMorgan’s preparedness for interest rates to hit 5%, noting that the bank had been well-positioned for that outcome even when it seemed improbable. But while he expressed confidence in JPMorgan’s resilience, he warned of a looming “crack in the bond market,” citing the risk that rising deficits and structural inefficiencies could trigger volatility in fixed income. “We were quite prepared for rates going to 5%,” he said. “But the bond market is vulnerable, and if something goes wrong, it won’t be small.”

Dimon remains especially concerned about the federal deficit, which is approaching $2 trillion annually—roughly 7% of GDP. If a recession hits, that figure could jump to 10%, he warned. He questioned the sustainability of the U.S. dollar’s global reserve status if Washington continues to fumble its economic stewardship. “The amount of mismanagement is extraordinary,” he said, citing breakdowns in everything from regulation and immigration policy to inner-city schools and the healthcare system. He said that, if reformed, the U.S. could “easily grow at 3% per year,” but only with decisive action. “We know what to do… but are we willing?” he asked.

Turning to geopolitics, Dimon was direct: “China is a potential adversary.” He acknowledged the strength of the Chinese system in certain areas but emphasized that Beijing faces significant internal problems. Still, he warned that external threats should not distract from the dysfunction at home. “What I really worry about is us,” Dimon said, highlighting the need to reestablish national unity, values, and competence. His critique extended to a call for internal reform rather than merely blaming external actors. “We have to get our own act together—fast.”

Tariffs, a flashpoint under the Trump administration, were another concern. While Dimon didn’t directly oppose the use of tariffs in strategic disputes, he cautioned against the unpredictable and reactionary nature of their implementation. He noted that recent tariff moves had destabilized the U.S.–China relationship and introduced unnecessary uncertainty into global markets. Though Dimon didn’t take aim at Trump directly, his broader commentary pointed to a need for more coherent economic diplomacy, especially as tariff policies reverberate across key industries like consumer goods and semiconductors.

On taxes, Dimon made waves by openly supporting the taxation of carried interest, a long-standing loophole that allows private equity and hedge fund managers to pay lower tax rates on investment profits. “We absolutely should be taxing carried interest,” Dimon said, joining a chorus of voices—including President Trump—calling for the provision’s repeal. He suggested redirecting the resulting revenue to expand child tax credits, a populist nod toward directing capital back into underserved communities. “This would be good policy, good economics, and good politics,” he said.

Dimon also blasted proxy advisory firms ISS and Glass Lewis, labeling them a “cancer” and arguing that they exert disproportionate influence over corporate governance without accountability. He again called for less regulatory clutter and a rollback of ineffective financial oversight practices, taking aim specifically at stress tests, which he dismissed as “a complete waste of time.”

Throughout the interview, Dimon’s tone was consistent with his long-standing reputation as a realist and risk manager. While his warnings have not always borne out—he famously predicted an economic “hurricane” in 2022 that never fully materialized—his track record of steering JPMorgan through crises has earned him both credibility and caution. In Dimon’s world, it’s better to be over-prepared and wrong than complacent and blindsided.

If there was one unifying thread, it was a call to seriousness. Dimon’s message wasn’t partisan—it was managerial. Fix the systems. Cut the noise. Make the hard decisions. “This may be the most dangerous time the world has seen in decades,” he said last year. On Friday, he didn’t walk that back—instead, he added new chapters.

Even as JPMorgan posts record profits and solidifies its dominance, Dimon remains the cautious general, scanning the horizon for threats most would prefer to ignore. Whether the market heeds him this time is another question entirely.