A ‘Bond Crisis’ Looms, Warns Jamie Dimon. It’s Time to Tackle World Debt, or Face Higher Inflation.

JPMorgan CEO Jamie Dimon warned of a potential “bond crisis” if global leaders don’t address rising government debt, saying persistent large deficits are likely inflationary and could force investors to demand higher yields. He spoke at a Norges Bank Investment Management conference in Oslo, as U.S. fiscal 2026 deficits have run $1.17 trillion so far. Market inflation expectations are already rising: the 10‑year breakeven inflation rate hit 2.44%, its highest since mid‑2025. Analysts note that further increases (above ~2.5%) would make cutting rates difficult and be negative for U.S. debt. Dimon’s remarks highlight balance‑sheet and rate‑risk for bond markets and add downside pressure to fixed‑income assets while increasing the likelihood of higher long‑term yields and entrenched inflation expectations.