JPMorgan Chase's Dimon: Bessent should be responsible for trade negotiations, the U.S. bond market will experience chaos, prompting the Federal Reserve to take action

One of the most influential figures on Wall Street, CEO Jamie Dimon of JPMorgan Chase, who has been at the helm for nearly two decades, warned that President Trump's trade policies could challenge the credibility of the United States. He called on the Trump administration to reach trade agreements with its trading partners and reiterated that chaos could arise in U.S. Treasury bonds, potentially forcing the Federal Reserve to intervene.

In a media interview released on Tuesday, April 15, Eastern Time, Dimon stated that he believes U.S. Treasury Secretary Steven Mnuchin should be responsible for negotiating trade agreements. Speaking about Mnuchin, Dimon said, "I know him a little bit," describing him as a mature person. Although he claimed not to agree with everything the Trump administration does, Dimon believes Mnuchin should be the one in charge of trade negotiations.

According to Xinhua News Agency, the U.S. government quietly released information on its official online platform last Friday night, exempting electronic products such as smartphones, laptops, and chips from the so-called "reciprocal tariffs." Subsequently, Trump stated that some tariffs would be suspended, emphasizing that this was influenced by Dimon's interview on his favorite FOX Business channel. Dimon had warned at that time that ongoing trade conflicts and uncertainties could lead to an economic slowdown.

In Tuesday's interview, Dimon urged Trump to reach an agreement to mitigate the adverse effects of tariffs. Dimon stated that the U.S. government should engage with China. He does not believe that decoupling from China should be the goal of the U.S., but that the U.S. should rely on itself or close allies. He believes, "We should work with our allies... I hope to ultimately negotiate with Europe, the UK, Japan, South Korea, Australia, and the Philippines, and establish very strong economic relationships."

According to Securities Times, Mnuchin stated on Monday that he still hopes to reach a significant trade agreement with China, which requires a model that is fundamentally different from past trade and currency agreements. Mnuchin emphasized that any U.S.-China negotiations must occur at the highest levels. He pointed out that tariffs are no joke, as the numbers involved are substantial. He believes these are unsustainable, and no one wants these tariffs to continue.

On Tuesday, Dimon also discussed the U.S. bond market, stating that chaos in the U.S. bond market could prompt the Federal Reserve to act. Regarding market dynamics, Dimon said that the deleveraging of U.S. Treasury bonds may have "temporarily ended."

During JPMorgan Chase's earnings call last Friday, Dimon had indicated that the U.S. bond market might experience a "small storm," leading the Federal Reserve to intervene.

On Monday, after U.S. stock trading, Mnuchin attempted to downplay the recent sell-off in U.S. Treasuries in a media interview, explicitly denying speculation that foreign investors were selling U.S. Treasury bonds, stating, "The decline in bond prices is mainly a result of deleveraging, and there is no evidence that sovereign nations are selling U.S. Treasury bonds."

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