JPMorgan CEO Jamie Dimon Urges Against Challenging US Dollar’s Reserve Currency Status

JPMorgan Chase CEO Jamie Dimon has urged towards difficult the U.S. greenback’s reserve forex standing amid the continuing de-dollarization pattern globally. “The United States is the fundamental foundation of the global economy. The U.S. dollar is the fundamental reserve currency,” Dimon mentioned, 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. financial system and the U.S. greenback because the world’s reserve forex with the press after assembly with House Democrats on Capitol Hill on Wednesday.

Noting that the U.S. financial system 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 famous:

We have points down the highway.

Dimon particularly talked about extreme spending, the Federal Reserve’s quantitative tightening, the Russia-Ukraine struggle, and uncertainties surrounding oil, gasoline, and vitality. “We have to deal with those. Hopefully, we’ll get through all of that,” he opined.

The JPMorgan boss additionally commented on the debt ceiling. Last week, Congress handed a invoice to droop the debt ceiling restrict till January 2025, which President Joe Biden signed into regulation on Saturday. Without this invoice, the U.S. authorities would have defaulted on its debt obligations on June 5, Treasury Secretary Janet Yellen had warned.

“I feel it’s fabulous we didn’t have a debt ceiling disaster. I feel it’s nice,” Dimon mentioned, reiterating his desire to get rid of the debt ceiling altogether. “If I had my druthers, I’d get rid of it one day,” the JPMorgan govt famous. He added:

The United States is the basic basis of the worldwide financial system. The U.S. greenback is the basic reserve forex. People depend on the consistency requirements that we have now, the rule of regulation, or investor protections. We shouldn’t be difficult that.

Meanwhile, a rising variety of nations are ramping up efforts to de-dollarize and use nationwide currencies instead of the USD in commerce settlements, together with the BRICS nations and ASEAN members. There can also be a proposal for a standard BRICS forex that’s anticipated to be discussed on the financial bloc’s upcoming leaders’ summit.

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