{"id":144379,"date":"2025-06-02T09:00:42","date_gmt":"2025-06-02T09:00:42","guid":{"rendered":"https:\/\/teknomers.com\/en\/trumps-policies-threaten-the-u-s-debt-market-warns-jpmorgans-influential-ceo-teknomers\/"},"modified":"2025-06-02T09:00:44","modified_gmt":"2025-06-02T09:00:44","slug":"trumps-policies-threaten-the-u-s-debt-market-warns-jpmorgans-influential-ceo-teknomers","status":"publish","type":"post","link":"https:\/\/teknomers.com\/en\/trumps-policies-threaten-the-u-s-debt-market-warns-jpmorgans-influential-ceo-teknomers\/","title":{"rendered":"“Trump’s policies threaten the U.S. debt market, warns JPMorgan’s influential CEO.” – Teknomers"},"content":{"rendered":"\n
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\n Historically, the United States has relied on the market’s appetite for U.S. Treasury bonds, at low-interest rates, to support its economy.
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Jamie Dimon in Paris, May 15, 2025. (POOL \/ MICHEL EULER)<\/p>\n<\/p><\/div>\n

\n The CEO of American bank JPMorgan Chase, \u00a0Jamie Dimon\u00a0, expressed concerns on Sunday, June 1, about a potential \u00a0debt market crisis\u00a0 in the United States “in six months or in six years.” He cited the policies of former President \u00a0Donald Trump\u00a0, rising \u00a0inflation\u00a0, increasing \u00a0deficits\u00a0, and breaches of the rule of law as contributing factors.\n <\/p>\n

\n “This is a big problem. It’s a real issue. […] I don’t know if it’s in six months or in six years, but the bond market is going to face difficulties,” he stated during an interview on \u00a0Fox Business\u00a0. The full interview will air on Monday in the program \u00a0Mornings With Maria\u00a0.\n <\/p>\n

\n According to Dimon, once investors recognize the impact of rising debt levels, \u00a0interest rates will soar\u00a0, disrupting the markets\u2014a dangerous scenario for the economy of the world’s leading power. \u00a0Investors will scrutinize\u00a0 the nation, its rule of law, inflation rates, and the policies of the central bank. “If they decide that the dollar is no longer a safe haven, financing U.S. debt will become more expensive,” he warned.\n <\/p>\n

\n Historically, the United States has depended on the \u00a0market’s appetite for Treasury bonds\u00a0 at low-interest rates to bolster its economy.\n <\/p>\n

\n Extended Tax Credits
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\n Rates spiked last week (before declining) amid \u00a0fears related to President Trump’s budget proposal\u00a0, which includes an extension of the enormous tax credits from his first term.\n <\/p>\n

\n Investors, along with many ultra-conservative lawmakers, are concerned about a \u00a0widening federal deficit\u00a0. In mid-May, for the first time, the credit rating agency \u00a0Moody’s\u00a0 downgraded U.S. debt from its maximum AAA rating to AA1.\n <\/p>\n

\n \u00a0The announcements and flip-flops from the White House regarding tariffs\u00a0 also create significant uncertainty and volatility in the markets.\n <\/p>\n

\n Dimon had previously warned in April about the \u00a0considerable turbulence\u00a0 facing the American economy, highlighting tariffs, trade wars, inflation, and budget deficits as critical issues.\n <\/p>\n

\n “I’ve known Jamie for a long time, and throughout his career, he has made predictions like these. Fortunately, \u00a0not all of them have come true\u00a0,” reacted U.S. Treasury Secretary \u00a0Scott Bessent\u00a0 during an interview on \u00a0CBS\u00a0. He acknowledged the \u00a0level of debt concerns\u00a0, but assured that “this year’s deficit will be lower than last year\u2019s, and in two years, it will reduce further.”\n <\/p>\n

\n The process “takes time,” he added. “The goal is to reduce the deficit over the next four years and leave the country in good health by 2028.”\n <\/p>\n<\/div>\n


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General News – 2<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Historically, the United States has relied on the market’s appetite for U.S. Treasury bonds, at low-interest rates, to support its economy. Jamie Dimon in Paris, May 15, 2025. (POOL \/ MICHEL EULER) The CEO of American bank JPMorgan Chase, \u00a0Jamie Dimon\u00a0, expressed concerns on Sunday, June 1, about a potential \u00a0debt market crisis\u00a0 in the […]<\/p>\n","protected":false},"author":1,"featured_media":144380,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23832],"tags":[],"class_list":["post-144379","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"_links":{"self":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/posts\/144379","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/comments?post=144379"}],"version-history":[{"count":0,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/posts\/144379\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/media\/144380"}],"wp:attachment":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/media?parent=144379"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/categories?post=144379"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/tags?post=144379"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}