The CEO of JPMorgan, the largest bank in the US, made an extremely aggressive statement at one of the most important events for the American economic elite.
- “A crack in the US bond market is inevitable” 🔥
It was with this phrase that Jamie Dimon caught attention at the Reagan National Economic Forum, held at the Ronald Reagan Library.
- Why does this topic matter? 👀
The US bond market is where the US government issues debt to finance itself. It is the largest and most important in the world.
Treasuries, as these bonds are called, are considered the safest asset on the planet. Therefore, they serve as a reference for calculating the risk and price of practically all other assets.
If this market shakes, the entire financial system feels it!
- Dimon predicts 5% interest rates, but says JPMorgan is ready 🥵
JPMorgan would already be positioned for scenarios with even higher interest rates.
According to him, the bank can benefit from market distortions without having to take excessive risks or panic.
- But the biggest alert was fiscal 🔥
Dimon has been harshly critical of the growing US deficit.
He said that if nothing is done, the US could put its own fiscal stability at risk, impacting all global markets.