Jamie Dimon warned that the American bond market would “shoot” a growing debt of the Earth, calling for the administration of Donald Trump for America to focus on a more sustainable path.
JPMorgan Chase CEO on Friday said he warned the regulators: “You will see the bond market shooting.”
He added:
“I tell you this will happen. And you’ll start panic. I won’t panic. We’ll be fine.”
Warning Head of the largest US bank for the growing risks of the US Bond market – determines the costs of trillion dollars long around the world – emphasizes that Wallstreet becomes more concerned about the growing level of national debt.
This happens at the moment when the Congress is considering Trump’s “large, beautiful” budget proposal, which is expected to significantly increase the federal deficit.
Even before the introduction of the law, which the representative home adopted last Sundays and is currently being considered in the Senate, the Congress Office for the Budget predicted that the US debt would exceed its highlight from the 1940s in the coming years.
Long-term American bonds are under pressure from fiscal care, with the yield of 30-year treasury bonds traded on about 5 percent, which is a slightly more than 4 percent at the beginning of 2024. The MUDIS was also taken by the US Triple and Credit Rating.
State bond market increased by approximately 5 trillion dollars in 2008. today at 29 trillion dollars today, because the government reduced taxes and increased consumption – especially during the coronavirus pandemic.
The market is the deepest and most liquid in the world and has long benefited from the dollar privilege as a world backup currency.
But as the debt load grew, the demand also declined. Foreign investors are constantly retreated from the state bond market over the past decade, which has accelerated Trump Tariff Policy.
Jamie Dimon said that growing geopolitical tensions, trade wars and the growing levels of debt around the world mean that “tectonic plates” global economies move.
“I just don’t know if there will be a crisis in six months or six years,” said the Government’s National Economic Forum to “change the regulators” to increase their bond trade capacity.
“I think we can improve everything, including this, only by changing and modifying some of these rules and regulations.”
His comments reminded of the comments of the Goldman Sachs, Jon Waldron, described by a growing American deficit as “somewhat worrisingly” and warned that his influence on the bond market “is currently”, “B92” reports.
