Jamie Dimon, Chairman and Chief Govt Officer of JPMorgan Chase & Co., attends the ribbon-cutting ceremony opening the agency’s new headquarters at 270 Park Avenue, in New York Metropolis, U.S., Oct. 21, 2025.
Eduardo Munoz | Reuters
JPMorgan Chase CEO Jamie Dimon on Tuesday warned that rising authorities debt ranges may set off a disaster within the bond market, urging policymakers to behave earlier than markets pressure their hand.
Dimon’s assertion was in response to a query about whether or not he was anxious about rising ranges of presidency debt “all over the world and in your nation.”
“The best way it is going now, there shall be some type of bond disaster, after which we’ll should cope with it,” Dimon mentioned at an funding convention held by Norway’s sovereign wealth fund, the biggest on the earth.
“I am not that anxious we’ll be capable of cope with it,” Dimon mentioned. “I simply suppose maturity ought to say you need to cope with it, versus let it occur.”
Dimon, who runs the world’s largest financial institution by market cap, mentioned historical past has proven that as we speak’s rising mixture of dangers may mix in unpredictable methods. Whereas the timing is unsure, failing to handle these pressures will increase the chances that adjustment comes after upheaval relatively than deliberate coverage strikes.
“The extent of issues which might be including to the danger column are excessive, like geopolitics, oil, authorities deficits,” Dimon mentioned. “They might go away, however they might not, and we do not know what confluence of occasions causes the issue.”
A bond disaster would doubtless imply a sudden bounce in yields and a breakdown in market liquidity, the place buyers rush to promote and patrons recede, usually forcing central banks to step in as patrons of final resort.
A current instance is the 2022 UK gilt disaster, when yields surged and the Financial institution of England needed to step in to stabilize the market.
Within the wide-ranging interview, Dimon addressed dangers he noticed within the credit score cycle and the tempo of synthetic intelligence adoption and his insights into setting company tradition.
Whereas he did not suppose that non-public credit score, at about $1.7 trillion, was massive sufficient to be a systemic danger to the U.S. financial system, he did say that the bigger danger was {that a} downturn throughout all lending classes can be harsher than anticipated.
“We’ve not had a credit score recession in so lengthy, so when we’ve one, it could be worse than individuals suppose,” Dimon mentioned. “It is perhaps horrible.”