San francisco: Jamie Dimon, Chief Executive Officer of JP Morgan Chase, on Sunday expressed concern over the risk of the crisis of the US debt market provoked by the economic policies of the Trump administration.
“This is a big thing. This is a real problem,” Dimon told Maria Bartiromo on the show “Morning with Maria” of the Fox Business Network, according to an excerpt from the interview, which will be aired on the entire Monday.
He said, “Bond market is going to have a difficult time. I don’t know if it is six months or six years old.”
Dimon warned that once investors get to know about the growing debt level impact, interest rates will touch the sky and the markets will be interrupted – a dangerous landscape for the world’s largest economy.
“People vote with their feet,” he insisted.
Investors are going to see the country, the rule of law, inflation rate, central bank policies, “he said, warning that” if people decide that there is no location of US dollars, “American debt financed will become more expensive.
Historically, the United States is capable of relying on market hunger for low-b-onion American Treasury Bonds to support its economy.
Amid concerns about President Donald Trump’s divisive budget plan, a sum brief yield yields last week.
The scheme expands the huge tax break launched during Trump’s first term, among other things, which removes the possibility of a balloon federal deficit.
In mid-May, for the first time, the United States lost its Triple-e-Credit rating from Moody’s.
When it announced the downgrade to the AA1, the rating agency warned us that we hope that the federal deficit to widen dramatically in the next decade.
The back-end-welfare announcements of the White House slapping on countries around the world are also creating a lot of uncertainty and thus there is instability in the market.
Dimon had already warned of “considerable disturbance” in April, facing the American economy, tariffs, tariffs, trade wars, inflation and budget deficiency impact.
US Treasury Secretary Scott Besent on Sunday reduced the predictions of Dimon’s debt market crisis.
“I have known Jamie for a long time, and for their entire career they have made such predictions,” Besant said during an interview on CBS.
“Fortunately, all of them are not true.”
Besent admitted that he was “concerned about the level of debt.”
But he said that “the deficit of this year is going to be less than the deficit last year, and in two years, it will be less again.”
“We are going to bring the deficit down slowly,” Besent said, emphasizing that addressing the deficit was a “long process”.
“The goal is to bring it down in the next four years, (and) Leave the country in great shape in 2028.”
