Jamie Dimon, CEO of JPMorgan Chase, has warned about the increased risks of public debt, which could lead to a bond crisis.

Jamie Dimon, the CEO of JPMorgan Chase, stated on Tuesday that the increase in public debt could generate a crisis in the bond market, highlighting the need for proactive actions from decision-makers.

At an investment conference, Dimon responded to questions regarding the rise in global public debt, stating that, in the absence of measures, a crisis will become inevitable. Although he does not believe that the economy will not cope, he emphasized that it is essential to address these issues before the markets force intervention.

Dimon highlighted geopolitical risks, fluctuations in oil prices, and government deficits as contributing factors to economic instability. A bond crisis could lead to a sharp increase in yields and a collapse of market liquidity, similar to the British government bond crisis of 2022.

Additionally, Dimon discussed the risks in the credit cycle and the impact of a recession on lending, warning that a recession could be more severe than expected.