The CEO of JPMorgan Chase, Jamie Dimon, said at the Reagan National Economic Forum in California that the US dollar might not stay the main global reserve currency. Dimon believes the main danger to America comes from America itself, as huge government spending and decisions of the Federal Reserve have introduced large risks.
Bond Market Crisis Alert
Dimon said that the bond market is bound to break because of the combination of excessive quantitative easing and mismanaged fiscal policies. He believed the crisis could occur in six months or six years, but wanted changes in policies to help stabilize the debt and improve how financial markets operate, so decisive action isn’t needed in an emergency.
Things That Make the Economy Uncertain
Trade issues with China, unpredictable tariffs and various other extreme factors were put forward by the JPMorgan CEO. He pointed out that inflation and stagflation risks are higher than most people realize. Furthermore, the US’s trading partners are moving closer to agreements with other countries which could speed up de-dolarization.
Effects and Consequences
On social media, Elon Musk reshared Dimon’s opinion, saying that Dimon is right. If the dollar is no longer a reserve currency, the US would have to pay more to borrow money. Furthermore, there could be heightened trouble in the global banking system. It is very difficult for any other currency to replace the US dollar’s importance in the markets.
Internal Threats Over External
Dimon mentioned that the US economy was strong but at the same time called for quick reforms in regulation. Taxes, immigration, education, healthcare and alliances with our military partners. Vice President JD. Vance has said that dollar-backed stablecoins could enhance the US’s economic power and help the dollar as main global currency.
