US debt a ‘real problem’ for bond markets, warns JPMorgan’s Dimon

Jimmy Damon, CEO of JPMorgan Chase, warned in a new interview that the growing and budget debt deficit in the United States government represents a problem in the end that causes bond market issues, and presented his ideas on how to move forward with reforms.

Damon was broadcast, in an interview broadcast on Monday on “Al -Sabah with Maria” by Fox Business Network, by host Maria Barteromo on the extent of his focus on the national budget deficit more than $ 36 trillion.

“It is a big problem, you know it is a real problem, but one day … bond markets will face a difficult time.” “I don’t know if it is six or six years.”

He said: “The real focus should be the growth, pro-business, cancellation of appropriate restrictions, allowing reform, getting rid of the blue tape, obtaining skills in schools, and obtaining this growth-this is the best way.”

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“Then fix some of these programs that everyone knows can be repaired properly,” Damon said, adding that these reforms can be organized in a way that reduces the cost of these programs while alleviating the effect on the poor or the elderly or those who deal with diseases while ensuring that these programs are sustainable.

“I think some reforms can occur. We do not benefit from the poor, patients or the elderly,” he said. “You are just setting rules in a place that make them more logical – as you know, less fraudulent, less wasted, less abuse.”

“I think all of these things must be done, and then we can overcome this problem,” Dienon said of the financial challenges of the United States government.

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The federal government is expected to run approximately $ 2 trillion of budget deficit annually in the next few years, which is historically large given that the deficit was at $ 1 trillion in the 2019 fiscal year, which is the last fiscal year before birth.

The deficit was partially expanded due to the high levels of social security and medical care amid the old age of America.

The expenses of the highest interest on the national debt, which stem from the size and growth of debt as well as high interest rates, are the other main impotence. In the past fiscal year, interest expenses have been a greater cost of the estimated budget for the Ministry of Defense as well as Medicare.

MOODY reduced credit rating for us: What does that mean?

The federal budget deficit is approaching $ 2 trillion per year. (Karen Bleier / AFP via Getty Images / Getty Images)

The difficult budget of the federal government has reduced the American credit rating according to MOODY rankings last month, reducing the first -class classification, AAA, to AA1.

The company said that the reduction “reflects the increase that exceeds a decade in government debt rates and pay benefits to much higher levels of kings classified.”

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The company said: “The successive American departments and congress have failed to agree on measures to reflect the direction of the large annual financial deficit and the increasing interest costs.” “We do not believe that the multiple discounts of the year in spending and mandatory deficit will result from the current financial proposals.”