The United States has accumulated a staggering amount of debt, exceeding half a trillion dollars since the beginning of 2024, prompting the CEO of the world’s largest bank to raise concerns about the country’s financial situation. Recent data from the Treasury reveals that as of May 14th, the US national debt has increased by $582.381 billion year-to-date. The interest on this debt has surpassed both national defense and Medicare spending. The nation’s total outstanding debt now stands at $34.5 trillion.

In an interview with Sky News, Jamie Dimon, the CEO of JPMorgan Chase, highlights that the growth in the American economy over the past few years has largely been fueled by borrowing. However, Dimon warns that if left unchecked, the debt-to-GDP ratio will become a significant problem that will be much more challenging to address.

Dimon emphasizes the importance of addressing fiscal deficit issues, stating, “America has spent a lot of money. And during Covid and after Covid, our deficit is now at 6%. That’s a substantial amount, but it undoubtedly drives growth. Any country can borrow money and experience some growth, but it may not always lead to positive growth. Therefore, America needs to be aware that we must focus more on our fiscal deficit issues, and this is crucial for the world.”

He further explains that the high inflation and its persistence can be attributed to the country’s 6% deficit and 100% debt-to-GDP ratio. Dimon urges the government to prioritize reducing the deficit while still maintaining good growth. He warns that delaying action will only lead to more severe consequences when the market forces the government to address the issue in an uncomfortable manner.

According to the Treasury Department, the US government has spent $855 billion more than it has collected in the 2024 fiscal year. In 2023, the total deficit spending reached $1.7 trillion.

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