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Yahoo
4 days ago
- Business
- Yahoo
Jamie Dimon warns US debt and deficits are a growing problem
JPMorgan Chase CEO Jamie Dimon warned in a new interview that the U.S. government's rising debt and budget deficits are a problem that will eventually cause bond market issues, and offered his thoughts on how reforms should move forward. Dimon, in an interview aired on Monday on FOX Business Network's "Mornings with Maria," was asked by host Maria Bartiromo how focused he is on the more than $36 trillion national debt and widening budget deficits. "It's a big deal, you know it is a real problem, but one day… the bond markets are gonna have a tough time," Dimon said. "I don't know if it's six months or six years." "The real focus should be growth, pro-business, proper deregulation, permitting reform, getting rid of blue tape, getting skills in schools, get that growth going – that's the best way," he said. House Reconciliation Bill Would Increase Budget Deficits By $2.3 Trillion Over A Decade: Cbo "Then reform some of these programs that everybody knows can be reformed properly," Dimon said, adding that those reforms can be structured in a way to lower the cost of those programs while mitigating the impact on the poor, elderly or those dealing with illnesses while ensuring those programs are sustainable. Read On The Fox Business App "I think some reform can take place. We're not taking benefits out of poor people or sick people or old people," he said. "You're just putting rules in place that make it more reasonable – you know, less fraud, less waste, less abuse." "I think all of those things need to be done, and then we can conquer that problem," Dimon said of the U.S. government's fiscal challenges. Cbo Says Us Budget Deficits To Widen, National Debt To Surge To 156% Of Gdp The federal government is projected to run roughly $2 trillion budget deficits annually in the next few years, which is historically large considering the deficit was $1 trillion in fiscal year 2019, the last pre-pandemic fiscal year. Deficits have widened in part due to rising spending on Social Security and Medicare amid the aging of America's population. Higher interest expenses on the national debt, which stem from the size and growth of the debt as well as higher interest rates, are the other primary drivers of the deficit. In the last fiscal year, interest expenses were a larger cost than the Department of Defense's discretionary budget as well as Medicare. Moody's Downgraded Us Credit Rating: What Does It Mean? The challenging budget situation the federal government is in led to a U.S. credit rating downgrade by Moody's Ratings last month, which lowered the rating one notch from the highest tier, Aaa, to Aa1. The firm said the downgrade "reflects the increase over more than a decade in government debt and interest payment ratios to levels that are significantly higher than similarly rated sovereigns." "Successive U.S. administrations and Congress have failed to agree on measures to reverse the trend of large annual fiscal deficits and growing interest costs," the firm said. "We do not believe that material multi-year reductions in mandatory spending and deficits will result from current fiscal proposals under consideration."Original article source: Jamie Dimon warns US debt and deficits are a growing problem
eNCA
4 days ago
- Business
- eNCA
US debt market crisis looming, JPMorgan chief warns
SAN FRANCISCO - JPMorgan Chase chief executive Jamie Dimon voiced concern at the risk of a looming US debt market crisis sparked by the Trump administration's economic policies. "It's a big deal. It is a real problem," Dimon told Maria Bartiromo on FOX Business Network's "Mornings with Maria" show, according to an excerpt of the interview that will air in full Monday. "The bond market is going to have a tough time. I don't know if it's six months or six years," he said. Dimon 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. "People vote with their feet," he stressed. Investors "are going to be looking at the country, the rule of law, the inflation rates, the central bank policies," he said, warning that "if people decide that the US dollar isn't the place to be," financing US debt will become more expensive. Historically, the United States has been able to rely on market appetite for low-interest US Treasury bonds to support its economy. Yields briefly climbed last week, amid concerns about President Donald Trump's divisive budget plan. The plan would, among other things, extend the gigantic tax breaks introduced during Trump's first term, spurring fears of a ballooning federal deficit. In mid-May, for the first time ever, the United States lost its triple-A credit rating from Moody's. When it announced the downgrade to Aa1, the ratings agency warned that it expects US federal deficits to widen dramatically over the next decade. The White House's back-and-forth announcements of towering tariffs slapped on countries around the world are also creating considerable uncertainty and thus market volatility. Dimon already warned in April of "considerable turbulence" facing the American economy, pointing to the impact of tariffs, trade wars, inflation and budget deficits. US Treasury Secretary Scott Bessent on Sunday downplayed Dimon's predictions of a debt market crisis. "I've known Jamie a long time, and for his entire career he's made predictions like this," Bessent said during an interview on CBS. "Fortunately, not all of them have come true." Bessent acknowledged that he "was concerned about the level of debt." But he said "the deficit this year is going to be lower than the deficit last year, and in two years, it will be lower again."
The Sun
5 days ago
- Business
- The Sun
US debt market crisis looming, JPMorgan chief warns
SAN FRANCISCO: JPMorgan Chase chief executive Jamie Dimon voiced concern Sunday at the risk of a looming US debt market crisis sparked by the Trump administration's economic policies. 'It's a big deal. It is a real problem,' Dimon told Maria Bartiromo on FOX Business Network's 'Mornings with Maria' show, according to an excerpt of the interview that will air in full Monday. 'The bond market is going to have a tough time. I don't know if it's six months or six years,' he said. Dimon 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. 'People vote with their feet,' he stressed. Investors 'are going to be looking at the country, the rule of law, the inflation rates, the central bank policies,' he said, warning that 'if people decide that the US dollar isn't the place to be,' financing US debt will become more expensive. Historically, the United States has been able to rely on market appetite for low-interest US Treasury bonds to support its economy. Yields briefly climbed last week, amid concerns about President Donald Trump's divisive budget plan. The plan would among other things extend the gigantic tax breaks introduced during Trump's first term, spurring fears of a ballooning federal deficit. In mid-May, for the first time ever, the United States lost its triple-A credit rating from Moody's. When it announced the downgrade to Aa1, the ratings agency warned that it expects US federal deficits to widen dramatically over the next decade. The White House's back-and-forth announcements of towering tariffs slapped on countries around the world are also creating considerable uncertainty and thus market volatility. Dimon already warned in April of 'considerable turbulence' facing the American economy, pointing to the impact of tariffs, trade wars, inflation and budget deficits. US Treasury Secretary Scott Bessent on Sunday downplayed Dimon's predictions of a debt market crisis. 'I've known Jamie a long time, and for his entire career he's made predictions like this,' Bessent said during an interview on CBS. 'Fortunately, not all of them have come true.' Bessent acknowledged that he 'was concerned about the level of debt.' But he said 'the deficit this year is going to be lower than the deficit last year, and in two years, it will be lower again.' 'We are going to bring the deficit down slowly,' Bessent added, insisting that addressing the deficit was a 'long process.' 'The goal is to bring it down over the next four years, (and to) leave the country in great shape in 2028.'
Hindustan Times
5 days ago
- Business
- Hindustan Times
US debt market crisis looming, JPMorgan chief warns
JPMorgan Chase chief executive Jamie Dimon voiced concern Sunday at the risk of a looming US debt market crisis sparked by the Trump administration's economic policies. "It's a big deal. It is a real problem," Dimon told Maria Bartiromo on FOX Business Network's "Mornings with Maria" show, according to an excerpt of the interview that will air in full Monday. "The bond market is going to have a tough time. I don't know if it's six months or six years," he said. Dimon 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. "People vote with their feet," he stressed. Investors "are going to be looking at the country, the rule of law, the inflation rates, the central bank policies," he said, warning that "if people decide that the US dollar isn't the place to be," financing US debt will become more expensive. Historically, the United States has been able to rely on market appetite for low-interest US Treasury bonds to support its economy. Yields briefly climbed last week, amid concerns about President Donald Trump's divisive budget plan. The plan would among other things extend the gigantic tax breaks introduced during Trump's first term, spurring fears of a ballooning federal deficit. In mid-May, for the first time ever, the United States lost its triple-A credit rating from Moody's. When it announced the downgrade to Aa1, the ratings agency warned that it expects US federal deficits to widen dramatically over the next decade. The White House's back-and-forth announcements of towering tariffs slapped on countries around the world are also creating considerable uncertainty and thus market volatility. Dimon already warned in April of "considerable turbulence" facing the American economy, pointing to the impact of tariffs, trade wars, inflation and budget deficits. US Treasury Secretary Scott Bessent on Sunday downplayed Dimon's predictions of a debt market crisis. "I've known Jamie a long time, and for his entire career he's made predictions like this," Bessent said during an interview on CBS. "Fortunately, not all of them have come true." Bessent acknowledged that he "was concerned about the level of debt." But he said "the deficit this year is going to be lower than the deficit last year, and in two years, it will be lower again." "We are going to bring the deficit down slowly," Bessent added, insisting that addressing the deficit was a "long process." "The goal is to bring it down over the next four years, leave the country in great shape in 2028." juj/nl/mlm J.P. MORGAN CHASE & CO MOODY'S CORP. ADVANCED ACCELERATOR PLICATIONS
Fox News
24-04-2025
- Business
- Fox News
Charles Gasparino: Potential Trade Deals Could Be Coming in a Matter of 'Days'
Charles Gasparino, senior correspondent for FOX Business Network and author of Go Woke, Go Broke: The Inside Story of the Radicalization of Corporate America , joined The Guy Benson Show today to break down his recent reporting on potential trade deals aimed at navigating the Trump tariff battles currently rocking U.S. relations around the globe. Gasparino described the volatility rattling the stock market as reports and even social media posts send it soaring or plummeting. He also warned that if Trump initiates a trade war with China, it could ultimately do more harm to American farmers than it does to Beijing. Listen to the full interview below! Listen to the full interview below: Listen to the full podcast below:
