JPMorgan Chase CEO Jamie Dimon has raised alarms about the potential vulnerabilities in the U.S. bond market. Dimon pointed to the rising national debt, suggesting that it could push the bond market to a breaking point unless a more sustainable fiscal direction is adopted, the Financial Times reported.

Dimon also addressed concerns about possible higher interest rates, indicating that the U.S. stock market appears somewhat overvalued. He noted that the bond market, particularly sovereign debt, is priced at historical highs. According to NBC Los Angeles, Dimon stated that inflationary pressures—stemming from environmental policies, infrastructure investments, and trade conflicts—might result in prolonged periods of elevated interest rates.

Moreover, Dimon cautioned about the risks of stagflation, where simultaneous high inflation and stagnant economic growth could place pressure on real estate and businesses with heavy debt. As reported by Business Standard, these conditions might lead to market volatility, which, while presenting challenges, could also result in increased trading activity that benefits financial firms like JPMorgan. These perspectives underline Dimon's prudent stance on navigating current economic uncertainties.