JPMorgan Chase CEO Jamie Dimon said he would not buy long-dated government bonds, warning that elevated government debt and persistent fiscal deficits could eventually push interest rates higher and unsettle financial markets. Speaking on The Master Investor Podcast, Dimon noted that debt-to-GDP ratios have climbed to around 100% in the U.S. and Europe, while deficits remain historically elevated despite the absence of a major recession or war. His comments come days after publicly held U.S. federal debt surpassed 100% of GDP for the first time since World War II. Dimon also cautioned against placing too much weight on individual inflation reports, saying he sees little upside in owning long-dated bonds even if inflation falls to the Federal Reserve's 2% target.
JPMorgan Chase & CoCEO Dimon's comments on long-term bond yields and fiscal deficits may affect JPMorgan's bond trading and interest income, but the net impact is unclear.