Treasury head Scott Bessent says Jamie Dimon should relax about the bond markets: ‘For his entire career he’s made predictions…none of them have come true’

• Treasury Secretary Scott Bessin underestimated his concern about the US debt on Sunday, A few days after JPMorgan Chase, CEO of Jamie Dimon, has been unable to a long time ago, once again warned of the effects of our spending on bond markets. Pesin said that the function of Damon in banking means that it should be worried, adding: “Throughout his career, he predicted such,” but “none of them was fulfilled.”

Jimmy Damon, CEO of JPMorgan Chase, has looked for years, a warning about the level of borrowing in the United States – and the late bond market appears to be agreed with it. But Treasury Secretary Scott Bessent does not buy these concerns, which indicates in the Sunday news program that they are somewhat exaggerated.

Talk to CBS ‘news Facing the nation On June 1, Bessin addressed Damon’s recent concerns about what Margaret Brennan’s host in the name of the debt market crisis.

“Jimmy has known for a long time. And throughout his career, he predicted like this,” said Besent Brennan. “Fortunately, none of them was fulfilled.”

He added: “That is why it is a wonderful banker. He is trying to look around the corner.” Pesin has also faced a widespread prediction that the Republican Party spending bill – which flourishes government benefits and reduces taxes, most of them for the wealthy – will cost between 4 to 5 trillion dollars over the next decade.

“The deficit will decrease slowly,” said Pesin, noting the income of customs duties and savings from President Donald Trump’s controls for the prescribed medications that would compensate for the difference.

“We did not get here in one year, and this was a long process,” he said. “So the goal is to drop it over the next four years, and leave the country in good condition in 2028.”

When asked luck To meet Bimon on Friday with CNBC, when the CEO addressed the National Economic Forum Reagan and described the problem of debt on the horizon, among other geopolitical concerns.

Bond market tensions

Dimon is far from the only person concerned with American debt and the direction of comprehensive policy: bond markets share his concern. In April, the sale of bonds that pushed interest rates on US debt to the highest historical levels to Trump to retreat from his introductory plans, and put a “stop” on the mutual tariff planned against most of the trading partners in the United States.

In May, MOODY credit rating agency reduced US debt, which means that the United States no longer gets the highest rating of any of the three major credit agencies. During that month, the treasury revenues, which represent the level of risk investor in investing in the United States, increased steadily. Only last week, the return on the 30 -year -old wardrobe expressed, a psychological important barrier, outside an increase in October 2023, which was pushed by inflation concerns, not seen since the great recession.

Here’s how the bonds collapse, as Damon put it on Friday. Since the US debt, in the form of bonds, investors will demand a higher return, or interest rate, to compensate for the perceived risks that the debt may not be paid.

“There is a similar 30 trillion dollars of securities every day. These are investors around the world,” Damon said, speaking to Maria Barturiodomo in Fox News on the sidelines of the National Economic Forum Reagan. He said: “People vote with their feet – and they will discuss in the country, the rule of law, the rate of inflation, and the policies of the central bank … These prices are not determined by central banks.”

This means that nervous investors may have to raise interest rates on treasury bonds and affect what the US government pays to borrow money, as well as things like mortgage prices – without the Federal Reserve to do anything about it.

Dienon said that it would require debt reduction.

He said that the US government spending after birth, “we have reached 10 trillion dollars in five years,” and he is speaking to CNBC at the same event. When Ronald Reagan warned for the first time of deficit in the 1980s, “debt to GDP [ratio] It was 35 % and the deficit was 3.5 %. Today is 100 %, IST deficit by 7 %. The highest time ever. “

“What I really am concerned is we. Can we collect our work together, our own ability, our own management,” Damon said later. “If we have not been the prominent army and the prominent economy for 40 years, we will not be the backup. This is a fact. Just read history.”

This story was originally shown on Fortune.com

2025-06-02 18:37:00