“We’ve got to get our act together,” JPMorgan Chase & Co. JPM CEO Jamie Dimon said in late May, warning that poor governance, not China, could erode U.S. leadership.
Speaking at the Reagan National Economic Forum in Simi Valley, California, Dimon pointed to crumbling bridges, grid bottlenecks, and a $36.2 trillion federal debt to shrinking national prestige. He also warned that the dollar’s reserve-currency crown could slip if Washington fails to correct course.
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Enemy Within Tops China
Dimon said the real opponent of the U.S. is “the enemy within,” pointing to stalled infrastructure, ballooning city pensions, and multiyear permit delays. Pointing to California’s high‑speed rail project, he argued that domestic inefficiencies—like cost overruns and bureaucratic delays—undermine U.S. competitiveness more severely than any foreign adversary.
“America First is fine, as long as it doesn’t end up being America alone,” Dimon wrote in his April shareholder letter, stressing that the U.S. cannot lead globally if it is paralyzed domestically. In the letter, Dimon urged Congress to streamline permits, upgrade the grid, and restore bipartisan discipline.
Debt Pressure Alarms The Fed
Treasury data show federal obligations hover near $36.2 trillion, adding interest costs every time rates tick higher.
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Federal Reserve Chair Jerome Powell said during the press conference immediately following the Fed’s interest rate decision last month that the debt path is “unsustainable,” urging lawmakers to craft solutions before markets do it for them. He warned that growing debt and rising interest costs can crowd out private investment and reduce economic productivity, limiting the government’s ability to respond to future downturns.
Big Bill Adds Fiscal Fuel
Dimon’s warning lands as Congress debates the “Big Beautiful Bill,” a combination of tax cut and spending package. The Congressional Budget Office projects the measure would widen deficits by $2.8 trillion over 10 years, while a Reuters analysis says it could lift debt to 125% of GDP by 2034.
Former Treasury Secretary Janet Yellen, in an interview with CNBC, offered a counterpoint in April, saying strong demand at recent bond auctions shows investors remain confident in U.S. credit, though she criticized abrupt tariff talk that might drive allies towards China. According to her, shifting to shorter-term debt would not be sensible.
Tesla Inc. TSLA CEO Elon Musk recently slammed Congress’s new spending bill on an X post, calling it a “disgusting abomination” packed with wasteful spending. He criticized lawmakers who supported it, saying they should be ashamed.
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Countdown To Fiscal Showdown
Congressional committees continue internal budget discussions as attention turns toward the Treasury’s upcoming refunding announcement in early August, where investors will look for signals on debt issuance strategy, particularly bond tenors.
Meanwhile, the Federal Reserve is scheduled to deliver its semiannual Monetary Policy Report to Congress this month, offering lawmakers fresh insight into inflation, growth, and interest rate trends.
Should the bill stall, Dimon’s plea may echo louder: Will policymakers act before rising rates and anxious allies force their hand?
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