US debt “real problem” for bond markets, warns Jpmorgan’s Dimon

Jpmorgan Chase CEO Jimmy Damon He was warned in a new interview that the increase in the increasing debts of the American government and the budget is a problem in the end that causes issues in the bond market, and presented his ideas on how to move forward with reforms.

Dimon, in an interview broadcast on Monday on Fox Business Network “Morning with Maria“The host, Maria Barteromo, asked how much he focused on more than $ 36 trillion, national debts and expanding the budget deficit.

“It is a big problem, you know it is a real problem, but one day … bond markets will face a difficult time.” “I don’t know if it is six or six years.”

He said: “The real focus should be the growth, pro-business, cancellation of appropriate restrictions, allowing reform, getting rid of the blue tape, obtaining skills in schools, and obtaining this growth-this is the best way.”

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“Then fix some of these programs that everyone knows can be repaired properly,” Dimon said, adding that these reforms can be organized in a way to reduce The cost of these programs With mitigating the impact on the poor, the elderly or those who deal with diseases while ensuring that these programs are sustainable.

“I think some reforms can occur. We do not benefit from the poor, patients or the elderly,” he said. “You are just setting rules in a place that make them more logical – as you know, less fraudulent, less wasted, less abuse.”

“I think all of these things must be done, and then we can overcome this problem,” Dienon said of the financial challenges of the United States government.

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The federal government is expected to run about $ 2 trillion Budget Annually in the next few years, which is historically large given that the deficit was $ 1 trillion in the 2019 fiscal year, the last fiscal year before birth.

The deficit was partially expanded due to the high levels of social security and medical care amid the old age of America.

The expenses of the highest interest on the national debt, which stem from the size and growth of debt as well as high interest rates, are the other main impotence. In the last fiscal year, The interest expenses were more costly From the estimated budget for the Ministry of Defense as well as medical care.

MOODY reduced credit rating for us: What does that mean?

The situation of the difficult budget led by the federal government led to the United States Credit classification Reducing Classification According to MOODY rankings last month, which reduced the first -class rating from the top of the layer, AAA, to AA1.

The company said that the reduction “reflects the increase more than a decade Government debt Paying benefits are attributed to much higher levels than kings classified. “

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The company said: “The successive American departments and Congress have failed to agree on measures to reflect the direction of the large annual financial deficit and the increasing interest costs.” “We do not believe that the multiple discounts of the year in spending and mandatory deficit will result from the current financial proposals.”