Jamie Dimon sounds alarm on rising US debt having ‘potentially disastrous outcomes’

JPMorgan Chase CEO Jamie Dimon says banks will be there for customers in good times and bad.

JPMorgan Chase CEO Jamie Dimon weighed in on fiscal policy under a new Congress and expressed concerns about the growing macroeconomic impact of debt in an exclusive four-part interview that aired on “Mornings with Maria” on Tuesday.

While the U.S. government debt stands at $31 trillion and is not “today’s problem,” according to Dimon, trying to pay it off one day will be a “hockey stick” to the economy and Americans’ pockets.

“I’m talking about the day America defaults on its debt, which has potentially catastrophic results. Once US debt goes into default, a lot of people can no longer own it, and US debt doesn’t pass debt.” , but it’s cumulative,” CEO Maria Bartiromo told host.

“To [Treasury bill] defaults, and next week Treasury defaults, next week Treasury defaults, pension plans have to be sold,” Dimon continued. “It’s so potentially dangerous that we shouldn’t go near it. And after all the shenanigans of politics, we’re going to have to fix this. I think it’s very bad that the nation is constantly watching this kind of thing.”

JPMORGAN’S JAMIE DIMON MORE OPTIMISTIC FOR US CONSUMERS

Dimon further expressed concerns about the fiscal regulatory system in America, but argued that “strong” consumer sentiment and balance sheets – combined with “appropriate” policy – could help the economy grow by 3%.

Jamie Dimon, chairman and chief executive of JPMorgan Chase, says rising US debt has “potentially catastrophic results” in an exclusive interview on “Mornings with Maria.” (Getty Images)

“I’m a little more concerned about the regulatory system in America, the judicial system, the regulatory system. We’re slowing down business formation, growth, allowing infrastructure projects. We shouldn’t have five or seven infrastructure projects. years,” argued the CEO of JPMorgan Chase. “So think, if you’re going to invest $1 billion in offshore wind and all of a sudden you think you can do it in two years, but it’s going to be 7 to 10 and you don’t know and you have to Lots of lawsuits aside, will you make $1 billion? And that’s become a much bigger problem than dealing with some sort of smaller rules.”

One of the problem systems involves US energy, according to Dimon, who doubled down on his support for investment in domestic producers’ plans for more pipelines and drilling permits. During a House Financial Services Committee hearing last year, the CEO had said that stopping funding for new oil and gas products “would be the road to hell for America.”

“I believe we have to do things about climate, CO2, but it’s not a simple thing like stop funding them,” Dimon said. “So if I can stop financing a good oil company, that’s not going to help. What we need are pipelines, permits. We can’t even get permits to build solar… we need a very comprehensive policy, and I don’t I don’t think we’ve got that right yet. I think we’re spending too much time just yelling and screaming at each other compared to what we need to do to meet these very important goals of sustainability and climate resilience, and the efficient and effective price and supply of oil.”

JPMorgan Chase CEO Jamie Dimon calls for policy reforms in education, health care, immigration and more in an exclusive interview on “Mornings with Mary.”

Dimon explained that he doesn’t blame or publicly support one party over another, but that the newly sworn-in Congress should put forward other “competent” policies on education, health care, infrastructure and even immigration.

“We need an immigration policy. We need to stop illegal immigration. We need more legal immigration,” the CEO said. “I would have a heart for DACA and things like that. So if we do those things right, we’re going to grow 3%.”

Rising interest rates and the unwinding of balance sheets by the Federal Reserve could also create an economic “trouble,” according to Dimon. The Fed has indicated that it has taken $2 or $3 trillion of cash off its balance sheet by selling securities.

“At some point, it could cause all this volatility in the markets and things like that. And they’re going to have to deal with it when they get there,” Dimon said. “And part of it is rules and regulations, part of it is money, part of it is fiscal stimulus. It’s kind of a complex thing. But I expect at some point they’re going to cause a problem.”

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JPMorgan Chase CEO Jamie Dimon discusses the state of the company and the macroeconomic outlook in an exclusive interview on ‘Mornings with Maria.’

Preparing for an economic “crisis” means assembling the best weapons in your personal arsenal to avoid policy-driven economic instability, Dimon noted.

“In terms of crisis, it’s about having the military to fight it in advance, the right margins, the right calculation, and then when they happen, you better move very quickly and do the right thing,” he said. “It’s the kind that Warren Buffett refers to, it doesn’t go backwards, it can sometimes stop moving forward, but it’s always growing and innovating. And part of it is this incredibly prosperous economy that we have to make sure that keep prosperous”.

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