“This Will Bite”: JPMorgan CEO Jamie Dimon Sounds Alarm on America’s $38 Trillion Debt

Jamie Dimon delivered a blunt reality check to Wall Street this week, warning that soaring government debt is a slow-burn risk that markets and policymakers are underestimating. Speaking on JPMorgan Chase’s fourth-quarter 2025 earnings call, the bank CEO said deficits in the U.S. and around the world will eventually trigger consequences that can’t be wished away.

Dimon’s Reality Check on Government Borrowing

“You can’t just keep on borrowing money endlessly,” Dimon said, reiterating a warning he has made repeatedly as U.S. debt climbs toward $38 trillion. While the timing of a reckoning is uncertain, he stressed that the math eventually forces hard choices on governments and markets.

JPMorgan Earnings Set the Stage for the Warning

The comments came as JPMorgan reported $45.8 billion in quarterly revenue and $4.8 trillion in assets under management, up 18% year over year. Despite the solid numbers, shares dipped after the call, reflecting investor unease about the broader macro risks Dimon emphasized.

A Mixed but Resilient Economic Outlook

Dimon struck a balanced tone on the economy. Labor markets have softened but are not deteriorating sharply, he said, while consumers remain resilient and businesses “generally remain healthy,” even after a year of market volatility tied to shifting trade and foreign policy.

Short-Term Optimism for 2026

Looking ahead, Dimon said the near-term outlook remains constructive. Consumers still have money, jobs remain plentiful despite some cooling, and stimulus from the “One Big Beautiful Bill” could support growth. Deregulation, he added, should help banks redeploy capital more efficiently.

The Macro Backdrop Investors Can’t Ignore

Beneath that optimism lies a riskier backdrop. Geopolitical tensions, Dimon warned, are “an enormous amount of risk” that could alter the economic trajectory quickly. These forces operate on different timelines than consumer spending or business investment; but can be just as decisive.

Debt and Deficits: The Slow-Burning Threat

The most persistent danger, according to Dimon, is fiscal. Massive deficits in the U.S. and abroad raise the odds of a future market backlash. He has previously warned of a potential “rebellion” if investors lose confidence in governments’ ability to manage their finances.

Costs Are Already Piling Up

That concern is no longer theoretical. The U.S. government spent $276 billion on interest payments in just the final three months of 2025. The Congressional Budget Office reported a $601 billion deficit in the first quarter of fiscal 2026, even before much of the year’s spending is finalized.

A $2 Trillion Deficit on the Horizon

Fiscal watchdogs see little relief ahead. Maya MacGuineas of the Committee for a Responsible Federal Budget said the U.S. is already on track for a $2 trillion deficit in 2026, urging lawmakers to avoid policies that further expand borrowing and to rein in discretionary spending.

Can Printing Money Solve the Problem?

One theoretical escape hatch is monetary expansion; having the central bank print money to ease the real burden of debt. But that path risks inflation or even hyperinflation, eroding returns for bondholders and pushing investors to demand higher yields down the line.

Who Really Owns America’s Debt?

Ownership matters if confidence falters. The Federal Reserve holds about $4.5 trillion in U.S. debt, while state and local governments own $1.7 trillion and mutual funds $4.4 trillion. Foreign investors are crucial too: Japan holds roughly $1.1 trillion, China $779 billion, and the U.K. $765 billion. A pullback by overseas buyers amid rising geopolitical tensions could weaken the dollar, stoke inflation, and drive borrowing costs even higher.

“Deal With the World We’ve Got”

White House officials argue tariff revenue will help offset borrowing, but Dimon remained pragmatic. “We have to deal with the world we got, not the world we want,” he said, underscoring that while banks can adapt, the debt problem won’t solve itself; and eventually, it will demand attention.

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2026 State Tax Shake-Up: See How Your Income, Property, and Sales Taxes Will Change

As the calendar flips to 2026, taxpayers across the country will feel the impact of sweeping state tax changes. From income tax cuts and flat-tax expansions to corporate reforms, sales tax overhauls, and property tax relief, 43 states are implementing notable tax changes, most taking effect January 1, 2026. Together, they reveal a clear trend: states are competing harder than ever to attract workers, families, retirees, and businesses. Below are some of the significant changes.

2026 State Tax Shake-Up: See How Your Income, Property, and Sales Taxes Will Change

$774 Billion on Hand: Treasury Braces for Tariff Refunds as Supreme Court Weighs Trump’s Powers

U.S. Treasury Secretary Scott Bessent said the federal government has more than enough cash to cover any tariff refunds if the Supreme Court rules against President Donald Trump’s emergency tariffs. With roughly $774 billion on hand, Bessent stressed that refunds would not pose a liquidity problem, even if payouts stretch over months or more than a year.

$774 Billion on Hand: Treasury Braces for Tariff Refunds as Supreme Court Weighs Trump’s Powers

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