JPMorgan Chase CEO Jamie Dimon has voiced cautious support for U.S. President Donald Trump’s new tax and spending bill, warning that while it may bring some economic stability, it will likely exacerbate the country’s ballooning fiscal deficit. Speaking at the JPMorgan Global China Summit in Shanghai, Dimon described the legislation as a short-term stabilizer but raised alarms about its long-term financial impact.
The bill, which cleared a key procedural hurdle in the House of Representatives on Wednesday, is estimated to add $3.8 trillion to the current $36.2 trillion U.S. debt over the next ten years. This growing burden has already triggered a reaction from global markets, with credit rating agency Moody’s recently downgrading the U.S. government’s credit rating from its top-tier status.
“I think they should do the tax bill. I do think it’ll stabilise things a little bit, but it’ll probably add to the deficit,” Dimon said in remarks obtained by Reuters. He emphasized the need for fiscal responsibility and criticized governments for inefficient spending that often fails to generate meaningful growth.
“It’s not just the United States, but governments have shown an amazing ability to spend your money not wisely,” Dimon warned. He stressed that effective budgeting and long-term investment are critical to managing deficits and fostering economic growth—principles he feels are absent in the current proposal. “I don’t think you see it on the big, beautiful bill,” he added, referring to Trump’s legislation.
In a separate interview with Bloomberg News, Dimon highlighted broader economic concerns, including the threat of stagflation a toxic mix of stagnating growth and high inflation. He noted that the Federal Reserve is taking a prudent approach by pausing interest rate hikes, but warned that inflationary pressures and geopolitical instability could deepen economic uncertainty.
As U.S. lawmakers move closer to passing the bill, Dimon’s remarks serve as a sobering reminder of the financial challenges ahead. While the tax cuts may offer short-term relief, the long-term cost to the national debt remains a serious concern among financial leaders and economists.
