Jamie Dimon says the dollar could lose reserve-currency status if the US loses its economic and military edge


Huileng Tan
Sun, August 9, 2026 

Jamie Dimon says US economic and military strength underpins the dollar's reserve status.

The US made a mistake relying on China for critical materials.

The Iran war shows the US isn't ready for a prolonged war.

The dollar could eventually lose its status as the world's reserve currency if the US fails to maintain its economic and military dominance, JPMorgan Chase CEO Jamie Dimon said.

"If we're not the strongest military in 25 years and the strongest economy, we won't be the reserve currency either," Dimon said on PBS' "Firing Line with Margaret Hoover," which aired over the weekend.

"The world will be fragmented, and it'll be very dangerous for us," Dimon added.

The dollar remains the world's dominant reserve currency, accounting for about 57% of global foreign-exchange reserves, down from around 70% at the turn of the century.

The freezing of Russian central-bank assets after Russia's 2022 invasion of Ukraine fueled concerns that the US's use of financial sanctions could accelerate a shift away from the dollar. So far, however, Federal Reserve research has found no notable post-2022 shift out of dollar reserves.

For Dimon, maintaining America's economic and military edge also means reducing its dependence on potential adversaries for strategically important goods.

The US should have recognized 10 or 15 years ago that it was relying on China for rare earths, aluminum, certain types of steel, and other equipment, he said.


"We can't rely on China for that, we can't allow mercantilist behavior, we need to do it here, we made a mistake," Dimon said.

Dimon then pointed to the war in Iran as evidence of another vulnerability: America's ability to sustain a prolonged war.

"The war in Iran has pointed out we didn't have productive capability to defend the United States if there was a real war that lasted for a long period of time," Dimon said. "And that's a hell of a statement."

Addressing those weaknesses has become urgent, he said.

In October, JPMorgan launched a $1.5 trillion, 10-year Security and Resiliency Initiative focused on industries crucial to US economic security, from critical minerals and advanced manufacturing to energy, defense, AI, and quantum computing.

Dimon said at the time it had become "painfully clear" that the US was too reliant on unreliable sources for critical minerals, products, and manufacturing essential to national security.

Business Insider on Yahoo.

Jamie Dimon says AI build-out could help unleash 'skunk at the party' for the world economy

David Hollerith · Senior Reporter
Thu, August 6, 2026 

JPMorgan Chase (JPM) CEO Jamie Dimon warned on Wednesday that heavy demand for capital could keep inflation elevated, spurring higher-for-longer interest rates.

"Inflation is both what people expect, but it's also capital demand, and it seems to me there's a lot of demand for capital," he said in a Wednesday CNBC interview.


Dimon said "huge infrastructure requirements," global deficits, wars, and remilitarization could add inflationary pressure and push up longer-term bond yields.

"I don't know if these things will push the rate up, but if they do, that could be the skunk at the party, that people want to be paid more money for long-term bonds, and so you just got to keep your eye on it," he noted.

Last week, the Federal Reserve held interest rates at the current range of 3.5% to 3.75%. Three of its members dissented in favor of a quarter-point hike. Dimon's warning echoes the argument made by one of those dissenters. Cleveland Fed president Beth Hammack said in a statement last Friday that she sees higher energy prices and inflationary pressures coming from the demand side.

A major source of capital demand is coming from the massive AI data center build-out, with Google parent company Alphabet (GOOG, GOOGL) looking to raise a fresh $25 billion on Thursday.

Hyperscaler capital spending is expected to rise from 1.4% of US gross domestic product in 2025 to 3.1% in 2027, according to consensus data compiled by Apollo chief economist Torsten Sløk. The increase — 0.85 percentage points annually — is roughly twice the pace of the US housing boom at its peak. (Disclosure: Yahoo is a portfolio company of funds managed by affiliates of Apollo Global Management.)

"It's a big build," Dimon said, adding that companies are making real calculations about the growing demand for AI models.

"Hopefully there'll be more productivity after they're built," he said. "It takes a while to get them up and running."

Dimon raised a separate issue on leverage. Across markets — including prime brokerage, hedge funds, exchange-traded products, and Treasury market arbitrage — leverage "is pretty high."

In late July, JPMorgan, Goldman Sachs (GS), and others sought increasingly large amounts of collateral from hedge fund Situational Awareness. The former highflier was facing a severe reversal of concentrated bets on AI-related stocks and software companies. The fund ultimately unwound its leverage, selling a portfolio of stakes in public companies to Ken Griffin's hedge fund giant Citadel.

"When you have that, you do have a higher chance that some people will disrupt the market in a quick way, and people get rattled over it," he said.

David Hollerith covers a range of developments throughout the financial sector, from Wall Street to banking and asset management to crypto and fintech. Email him at david.hollerith@yahoofinance.com. Follow him on X at @DsHollers.