Jamie Dimon, CEO and Chairman of JPMorgan Chase & Co., speaks during a U.S. Senate Committee on Banking, Housing and Urban Affairs oversight hearing on Wall Street firms on Capitol Hill in Washington, D.C., on December 6, 2023. gesture.
Evelyn Hochstein | Reuters
JPMorgan Chief Executive Jamie Dimon on Wednesday urged the United States to reduce its fiscal deficit as quickly as possible, warning that the problem could become “more troubling” if it continues to be ignored.
His comments followed a period of rapid interest rate hikes, tax cuts and a massive stimulus package aimed at supporting the world’s largest economy during the coronavirus pandemic.
“The United States has spent a lot of money. During and after COVID-19, our deficit is now 6%. That’s a big number, but obviously it drives growth,” Dimon told Sky News in an interview.
“Any country can borrow money and drive a certain amount of growth, but that may not always lead to good growth. So I think the United States should be very aware that we have to pay more attention to our fiscal deficit, which A little bit matters for the world,” he added.
The federal government has spent $855 billion more so far than it took in in fiscal 2024, according to the U.S. Census Bureau Ministry of Financeleading to national deficit.
In fiscal year 2023, government deficit spending will be $1.7 trillion.
Despite assurances from U.S. President Joe Biden’s administration that the Inflation Reduction Act will reduce the deficit, the deficit continues to increase.Hundreds of billions” To reduce the deficit, other than lowering prices.
Asked if the U.S. might suffer consequences for years to come if it fails to address the deficit, Dimon responded: “I don’t think it’s a big retribution, and I don’t think it’s going to be an issue for years to come. “But I think that’s why we have rising inflation. “
He added, “I think if you want to do well in your country and you have a deficit of 6% and a debt-to-GDP ratio of 100%, that may continue to be the case for a while, but the sooner we Pay attention to it, better.
Dimon said he wants the U.S. government to “really focus” on reducing the deficit while still enjoying a period of strong economic growth.
“At some point it’s going to cause the question, why wait?” Dimon said. “The problem will be caused by the market, and then you will be forced to deal with it, and probably in a more uncomfortable way than if you had to deal with it in the first place.”
“We should listen to each other”
In an interview with CNBC “Earlier this year, Dimon praised former President Donald Trump’s policy record and urged Democrats to have “more respect” for Trump’s supporters or risk hampering Biden’s re-election bid.
Dimon said in January that Trump was “kind of right” on issues including NATO, immigration and China.
Asked Wednesday whether his comments suggested he was optimistic about the prospect of being asked to serve as Treasury secretary if Trump wins a second term as president, Dimon responded: “Absolutely not.”
“I made these comments to show that we should listen to each other and talk to each other, whether you agree with someone or not,” Dimon said.
“I think people should be very clear about what policies work and what policies don’t. Whoever wins the presidency, I hope they enact policies that work for America and for the liberal democratic world.”
—CNBC’s Jeff Cox contributed to this report.
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