JP Morgan CEO Jamie Dimon says US must get economy under control or it's going to get 'a lot more uncomfortable'

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JPMorgan Chase CEO Jamie Dimon warned that the US needs to reduce its fiscal deficit sooner rather than later otherwise the issue will become ‘far more uncomfortable.’ 

The billionaire banker, 68, pointed to the nation’s response to the Covid-19 pandemic as the cause of the issue, as it triggered a period of rapid interest rate hikes, stimulus programs and tax hikes. 

‘America has spent a lot of money. During Covid and after Covid, our deficit is at 6% now,’ Dimon told Sky News. ‘That’s a lot, but obviously that drives growth.’ 

Through the 2024 fiscal year so far, the US deficit stands at $855 billion, which is $59 billion less than through the same period in the prior fiscal year, according to the Bipartisan Policy Center

JPMorgan Chase CEO Jamie Dimon warned that the US needs to reduce its fiscal deficit before the issue becomes ‘uncomfortable’ 

Through the 2024 fiscal year so far, the US deficit stands at $855 billion, which is $59 billion less than through the same period in the prior fiscal year

Dimon said the efforts made by the US government to prop up its economy have not been counter-corrected, and leaving the deficit to grow could allow it to become out of control. 

‘Any country can borrow money and drive some growth, but that may not always lead to good growth,’ he said.

‘So, I think America should be quite aware that we have got to focus on our fiscal deficit issues a little bit more, and that is important for the world.’ 

The deficit skyrocketed during the pandemic, reaching $3.13 trillion in 2020 and $2.71 trillion in 2021. 

Through 2023 that figure had dropped to $1.7 trillion, but Dimon said moves by President Biden’s administration – such as the Inflation Reduction Act – have not turned the tide as much as he would have hoped, reports CNBC

However, when questioned over whether Americans should be bracing for immediate economic turmoil, he downplayed the issue – but warned that things may also not be getting any better. 

‘I don’t think it’s a big comeuppance and I don’t think it’s the next couple of years, but I think it is why we have higher inflation,’ he said. 

‘I think if you want to do a great job in your country, and you have a 6% deficit and 100% debt to GDP, this can go [on] for a while, but the sooner we focus on it, the better.’  

After the deficit skyrocketed in the first years of his tenure in the White House, President Biden brought the deficit down to $1.7 trillion last year – but Dimon said he hopes the president ‘really focuses’ on bringing it down further 

Dimon, worth $2.2 billion, was once rumored to be in consideration for former President Trump’s Treasury Secretary

Dimon added that he is hoping Biden ‘really focuses’ on handling the deficit, and felt it was an issue that would only become dire if ignored. 

‘At one point it will cause a problem and why should you wait?’ he said. 

‘The problem will be caused by the market and then you will be forced to deal with it and probably in a far more uncomfortable way than if you dealt with it to start.’  

Dimon was once rumored to be in consideration for former President Trump’s Treasury Secretary, and was questioned by CNBC earlier in the year as he waded into politics. 

Speaking to the outlet’s ‘Squawk Box‘, he said Democrats should be ‘more respectful’ of Trump’s supporters, and praised the former president for being ‘kind of right’ about a number of controversial issues. 

But when questioned whether he was chiming in on the political scene to launch his own role in the cabinet, he said it was ‘absolutely not’ the case. 

‘Made those comments to make a point that we should listen to each other and talk to each other, whether you agree with someone or not,’ he said. 

‘I think people should be very clear about what polices work and what policies don’t work. Whoever wins the presidency, I hope they have policies that work for both America and the free and democratic world.’