Jamie Dimon Warns of Looming Bond Market Crack Amid Fiscal Overreach

JPMorgan Chase CEO Jamie Dimon issued a stark warning about impending instability in the bond market during his appearance at the Reagan National Economic Forum. "You are going to see a crack in the bond market, OK? It is going to happen," Dimon declared, attributing the coming turmoil to excessive government spending and aggressive monetary policies since the pandemic.

The critique centers on a Trump-backed tax plan that could expand the federal deficit by $2.7 trillion over a decade, exacerbating concerns about the nation’s $36 trillion debt burden. Treasury markets already show strain, with 10-year yields spiking to 4.418% this month following Moody’s credit downgrade that cited the government’s unsustainable debt trajectory.

Dimon characterized the post-2020 policy response as initially effective but ultimately excessive, flooding the economy with cheap money that now threatens financial stability. The warning signs include weak demand at recent Treasury auctions—a canary in the coal mine for fixed income markets.