Part 5/10:
While Treasury Secretary Scott Besson reassured markets that the US would not default, influential voices like JPMorgan Chase CEO Jamie Dimon have warned of potential stress within the US bond market. Rising debt levels, combined with interest costs approaching higher levels, heighten the risk that the US could face challenges servicing its obligations.
Financial institutions are forecasting further weakness in the dollar. Morgan Stanley predicts the US dollar index may fall to 91 by mid-2024—a drop of about 9%. Other major banks, such as JP Morgan Chase and Goldman Sachs, echo this bearish outlook, citing worries over new taxes on passive income, overvaluation, and concerns that the dollar's role as the global reserve currency is waning.