JPMorgan CEO: Markets feel 'complacent' - Fox News interview

JPMorgan CEO: Markets feel 'complacent' - Fox News interview

JPMorgan Chase CEO Jamie Dimon has issued a stark warning about an impending crisis in the US bond market, driven by the country's surging national debt. Speaking at the Reagan National Economic Forum in California, Dimon predicted a severe disruption in credit markets, citing the current trajectory of US fiscal policy [1].

Dimon's concerns are tied to a new tax proposal supported by President Trump, which is projected to widen budget deficits by approximately $2.7 trillion over the next decade. With the national debt already surpassing $36 trillion, bond traders have responded with anxiety, triggering a sharp selloff in US Treasurys. Yields on the benchmark 10-year Treasury note jumped to 4.418% in May amid tepid demand at recent auctions [1].

Ratings agency Moody's also downgraded the US credit rating from its top-tier AAA status, citing long-term fiscal deterioration. Dimon argued that post-2008 regulations have eroded banks' ability to serve as market stabilizers during volatility. He believes reforms are coming too slowly and warned that the financial system could face another major reckoning if decisive action is not taken [1].

Dimon raised broader concerns about America's economic leadership, warning that continued fiscal mismanagement could jeopardize the US dollar's status as the world's reserve currency. He added that while China remains a potential geopolitical rival, the greatest risk may lie within [1].

In a separate interview with CNBC, Dimon discussed tariffs, China, and US policy. He cautioned that once investors become aware of the impact of rising debt levels, interest rates would skyrocket and markets would be disrupted, a dangerous scenario for the world's biggest economy [2].

US Treasury Secretary Scott Bessent downplayed Dimon's predictions of a debt market crisis, stating that the deficit this year will be lower than last year and will continue to decline over the next four years [3].

References:
[1] https://www.moneycontrol.com/world/jpmorgan-ceo-jamie-dimon-warns-of-imminent-bond-market-crisis-over-soaring-us-debt-article-13083063.html
[2] https://www.cnbc.com/video/2025/05/30/pro-watch-cnbcas-full-interview-with-jpmorgan-ceo-jamie-dimon.html
[3] http://www.thejakartapost.com/business/2025/06/02/us-debt-market-crisis-looming-jpmorgan-chief-warns.html