Jamie Dimon warns US bond market will ‘crack’ under pressure from rising debt

Unlock FREE White House Watch Newsletter

Washington, Trump’s second word for business and the world is your guide for that

Jamie Dimon warns that the US bond market will “crack” under the weight of the country’s growing Debt because he has called on Donald Trump’s administration to keep the United States in a more sustainable trajectory.

JP Morgan Chase CEO on Friday said that he warned the controllers: “You’re going to see a crack in the bond market.” He added: “I’m telling you it is about to happen and

A warning from the US biggest bank chief about it risky US bond market – Which determines the cost of adoption of Orrows for the trillion dollar global – it refers to how Wall Street is increasing in growing discomfort about increasing government debt levels. Congress comes with Trump’s “big, beautiful” budget bill, which is expected to increase the federal deficit if passed.

Even before the introduction of the law, which was voted by the house Last week And in the Senate review, the Congressional Budget Office assumed that the US Debt would be higher than the top of the 1940s in the coming years as part of the GDP.

Long -term US bonds are under pressure due to financial concerns, that the 5 -year Treasury yield trade in the beginning of 2021 is more than 5 percent to about 5 percent. Raw Credit rating on the triple.

The Treasury Bond market has risen from $ 5TN to $ 29TN in 20 years because the government has deducted taxes during the expenditure – especially during the Coronavirus epidemic. The market has long benefited as a reserve currency in the world deepest and most fluid and dollar facilities.

But as the debt burden is increasing, the demand has also hit. Foreign investors are a step back to the back of the back of the Treasury Market in the past decade, the back of the back behind the back behind the back behind the backwards behind the backwards behind the back of the back.

Dimon It says that increasing geological tension, trade war and increasing the level of debt worldwide means the “tectonic plates” of the global economy were transferred.

“I just don’t know if this is going to be in a crisis within six months or six years,” he told the regulators to “change the path of the Debt N” and to ease restrictions in banks to “change the path of the Debt” for the bond business. “I think we simply make a few of these rules and modifications we can make everything better.”

His comments were echoed by Goldman Shutch President John Waldron, who described the United States as “somewhat related” in the United States earlier this week and alert its impact on the bond market as “a big risk on macro now.”

“I think as far as we could see the eyes, we’re going to run the bigger deficit, and we’re going to take more treasury orrow,” said Goldman’s second-in-command Waldron behind David Solomon. He told the Burnstein Conference in New York, “The major risk is to continue the long -term rates and the cost of capital in the economy is increasing and fundamentally a break on economic growth,” he said at the Burnstein Conference in New York.

According to a responsible federal budget independent committee, Trump’s budget bill will add at least 3.3TN to the US Debt by 2034. Moody warns that the bill will drop the US deficit from last year’s GDP.

Dimon also said that tax on interest carried in the United States should be raised, it is a provision of tax code that benefits private equity executives.

Trump has supported the idea, which has long been the goal of Democrats, including former President Barack Obama. “We should pay taxes on the interest we have absolutely carried out.” If he would consider whether he would run the office, 695 years old Dimon said “If I thought I could really win, which I don’t think I could do”.