JPMorgan CEO Jamie Dimon Urges US to Avoid Debt Ceiling 'Games'

Jamie Dimon said that the government should not play games with the debt ceiling, amid a standoff among Republicans and Democrats as the clock ticks down on the borrowing cap. He said that both sides need to come together and reach a compromise in order to avoid a potential financial crisis.

JPMorgan Chase & Co. CEO Jamie Dimon said on Thursday that the creditworthiness of the U.S. government should never be questioned. He said that this is not something that should be played with at all.

Congress is locked in a intense political battle over the debt ceiling, which could have a major impact on financial markets sometime after early June, when the US may default on a payment obligation.

The White House has said that the debt ceiling should be increased without any conditions attached, and administration officials have said that they will not negotiate on the matter.

Treasury Secretary Janet Yellen told Congress last week that the $31.4 trillion debt ceiling will be reached by Thursday. She said that after that, Treasury can deploy special accounting measures to avert a payment default until sometime after early June.

Dimon reiterated previous comments about the economy, warning businesses that they should be prepared for all eventualities. He said the economy remains strong, with consumers and businesses healthy even amid rising interest rates. On Thursday, he said Russia’s invasion of Ukraine could be “an inflection point” for the western world, as he listed it as one of the “real” issues facing the world alongside the vulnerable state of energy and trade.

On Friday, JPMorgan released its fourth-quarter results and warned of a slight deterioration in its macroeconomic outlook. This comes as the global economy continues to face significant challenges, including the ongoing trade war between the United States and China.

Dimon said last week that acquiring Frank, the college financial-planning website, was a mistake. He vowed to share takeaways from the experience after related litigation is over. On Thursday, he said there will always be lessons - and mistakes - in response to questions about the deal.

JPMorgan is suing the founder of Frank, which it bought for $175 million in 2021, for allegedly concocting millions of fake customers. A lawyer for the founder has disputed the allegations. The debacle threatens to renew concerns about spending at the biggest US bank that plagued the firm for much of last year.