Jamie Dimon has warned that the US bond market will “crack” under the weight of the country’s rising debt as he called on Donald Trump’s administration to place America on a more sustainable trajectory.
The JPMorgan Chase chief executive said on Friday that he had cautioned regulators: “You are going to see a crack in the bond market.” He added: “I’m telling you this is going to happen. And you are going to panic. I’m not going to panic. We’ll be fine.”
The warning from the head of the US’s biggest bank about mounting risks for the US bond market — which sets borrowing costs for trillions of dollars in debt globally — underscores how Wall Street is growing increasingly uneasy about rising government debt levels. It comes as Congress is reviewing Trump’s “big, beautiful” budget bill, which if passed is broadly expected to markedly increase the federal deficit.