Jamie Dimon, CEO of JP Morgan Chase & Co. (NYSE:JPM), raised concerns about the perilous state of the U.S. fiscal deficit, which has swelled to a staggering $1.9 trillion in 2024. This deficit, amounting to over 6% of the nation's GDP, shows no signs of diminishing in the coming years.
"We spent a lot of money during COVID and after COVID, and our deficit is 6%," Dimon remarked in an exclusive interview with the UK's Sky News on Wednesday, highlighting the significant impact of recent government spending.
Despite the benefits of such spending in driving economic growth during and after the pandemic, Dimon warned that unrestrained borrowing and spending could have dire consequences. "It may not always lead to good growth," he cautioned.
Dimon stressed the importance of addressing the fiscal deficit, not only for the United States but for global economic stability. "I think America should be quite aware that we've got to focus on our fiscal deficit issues a little bit more and that is important for the world," he stated.
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IMF Issued Dire Projections On US National Debt And Fiscal Deficit
The International Monetary Fund (IMF) projects that the U.S. fiscal deficit will remain above 6% of GDP until the end of the decade. This persistent deficit necessitates the government to borrow an additional $2 trillion annually, exacerbating the burden of financing excess spending and paying interest on existing debt.
Consequently, the national debt is expected to surge to $46.79 trillion by 2029, representing 133% of GDP.
Year
National Debt to GDP (%)
National Debt ($bn)
Deficit to GDP (%)
Deficit ($bn)
2023
122.15
33,416.99
-8.79
-2,332.66
2024
123.26
35,474.27
-6.54
-1,913.93
2025
126.55
37,762.70
-7.05
-2,105.32
2026
128.89
39,980.93
-6.56
-2,022.34
2027
130.70
42,183.66
-6.25
-2,006.65
2028
132.57
44,521.48
-6.41
-2,141.50
2029
133.88
46,789.68
-5.95
-2,071.81
Data: IMF World Economic Outlook (April 2024)
Dimon also pointed out the role of the expanding fiscal deficit in maintaining high and persistent inflation rates.
He urged immediate action to mitigate these risks, emphasizing the need for a balanced approach that ensures sustainable economic growth while reducing the deficit.
"The sooner we focus on it, the better. I'm hoping that the government really focuses on how can we reduce that deficit and still have good growth," Dimon stated.
Failure to address the deficit could lead to severe economic repercussions.
"At some point, reducing the deficit will cause a problem," Dimon said, suggesting that delaying necessary adjustments could result in more severe and uncomfortable economic disruptions in the future.
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オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会（ASIC）の管理を受けております（AFSL No. 224663）。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。
Dimon stressed the importance of addressing the fiscal deficit, not only for the United States but for global economic stability. "I think America should be quite aware that we've got to focus on our fiscal deficit issues a little bit more and that is important for the world," he stated.
ダイモンは、米国だけでなく世界経済の安定のためにも、財政赤字に対処することの重要性を強調しました。「財政赤字問題にもう少し焦点を当てる必要があり、それは世界にとって重要であることをアメリカは十分に認識すべきだと思います」と彼は述べました。