Jamie Dimon warns of debt market trouble amid Trump’s economic policies

JPMorgan Chase CEO Jamie Dimon has raised serious concerns about the future of the U.S. debt market, warning that the Trump administration’s economic agenda could trigger a financial crisis if current trends continue unchecked.

Dimon’s comments come amid growing unease among investors and economists about the long-term sustainability of the federal deficit, which has ballooned in recent years. Analysts warn that continued high spending without adequate revenue could eventually push interest rates higher, spook bond markets, and make it more expensive for the government to borrow money.

Historically, the US has benefited from being seen as a safe bet by global investors. Treasury bonds have long been viewed as one of the world’s most stable financial assets. But that status could be at risk, Dimon cautioned, if confidence in U.S. fiscal management begins to erode.

“People vote with their feet,” he said. “They’ll look at the rule of law, inflation, central bank policy — and if they decide the U.S. dollar is no longer the safest place to be, we’re going to have a much more expensive debt burden.”

Market worries were reflected last week when U.S. bond yields briefly rose following the release of President Donald Trump’s latest budget proposal. The plan calls for an extension of the sweeping tax cuts introduced during his first term and increases in spending on defence and infrastructure, all of which could add significantly to the deficit.

Adding to the concern, the United States recently lost its perfect AAA credit rating from Moody’s for the first time ever. The ratings agency downgraded the U.S. to Aa1, citing expectations that the federal deficit will widen substantially over the next decade unless corrective measures are taken.

Trump’s approach to trade has also added uncertainty. The administration has repeatedly imposed tariffs on foreign goods, prompting concerns about global market volatility.

While some officials downplayed Dimon’s remarks, others acknowledged the underlying issue. U.S. Treasury Secretary Scott Bessent responded in an interview on CBS, saying, “I’ve known Jamie a long time, and for his entire career, he’s made predictions like this. Fortunately, not all of them have come true.”

However, Bessent did admit that the level of debt was something to watch closely. “I’m concerned about the debt, too,” he said. “But the deficit this year will be lower than last year, and we expect it to keep declining.”

Despite reassurances, Dimon’s warning highlights the growing divide between Wall Street and Washington over how to manage the nation’s finances in the years ahead.