JPMorgan Chase CEO Jamie Dimon has urged against challenging the U.S. dollar’s reserve currency status amid the ongoing de-dollarization trend globally. “The United States is the fundamental foundation of the global economy. The U.S. dollar is the fundamental reserve currency,” Dimon said, emphasizing: “We shouldn’t be challenging that.”
JPMorgan CEO Jamie Dimon on De-Dollarization and USD Hegemony
Jamie Dimon, CEO of JPMorgan Chase, shared his views on the U.S. economy and the U.S. dollar as the world’s reserve currency with the press after meeting with House Democrats on Capitol Hill on Wednesday.
Noting that the U.S. economy is “still doing fine,” Dimon described: “Consumers are in great shape, home prices have gone up for 10 years, asset prices have gone up, debt’s in good position.” However, he noted:
We have issues down the road.
Dimon specifically mentioned excessive spending, the Federal Reserve’s quantitative tightening, the Russia-Ukraine war, and uncertainties surrounding oil, gas, and energy. “We have to deal with those. Hopefully, we’ll get through all of that,” he opined.
The JPMorgan boss also commented on the debt ceiling. Last week, Congress passed a bill to suspend the debt ceiling limit until January 2025, which President Joe Biden signed into law on Saturday. Without this bill, the U.S. government would have defaulted on its debt obligations on June 5, Treasury Secretary Janet Yellen had warned.
“I think it’s fabulous we didn’t have a debt ceiling crisis. I think it’s great,” Dimon said, reiterating his preference to get rid of the debt ceiling altogether. “If I had my druthers, I’d get rid of it one day,” the JPMorgan executive noted. He added:
The United States is the fundamental foundation of the global economy. The U.S. dollar is the fundamental reserve currency. People rely on the consistency standards that we have, the rule of law, or investor protections. We shouldn’t be challenging that.
Meanwhile, a growing number of countries are ramping up efforts to de-dollarize and use national currencies in place of the USD in trade settlements, including the BRICS nations and ASEAN members. There is also a proposal for a common BRICS currency that is expected to be discussed at the economic bloc’s upcoming leaders’ summit.
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