Dimon: U.S. Dollar's Reserve Currency Status at Risk If America Loses Military and Economic Edge
Claire Weston
JPMorgan CEO Jamie Dimon warned that the dollar will lose its global reserve currency status if the U.S. fails to remain the dominant military and economic power over the next 25 years; he also called supply-chain dependence on China a core vulnerability.
What exactly is Dimon worried about?
In a PBS interview, Dimon set an explicit timeline: 25 years. If the U.S. is no longer the strongest military and the largest economy by then, the dollar's reserve status goes with it.
He warned the world would fragment, calling that outcome "extremely dangerous" for the U.S.
This means → in his view, the dollar's global role is not a financial question — it is a byproduct of military and economic dominance. Once the power recedes, the currency follows.
How fragile is the dollar's position right now?
The dollar still accounts for roughly 57% of global foreign-exchange reserves — but that figure was close to 70% at the start of the century, a drop of more than ten percentage points.
After the 2022 Russia–Ukraine conflict, the U.S. froze Russian central-bank assets, sparking fears the move would accelerate de-dollarization.
Yet the Fed's own research shows no significant outflow from global dollar reserves after 2022. In plain terms = the de-dollarization trend is real, but it has not reached a stampede.
Why does he call supply-chain dependence a "core vulnerability"?
Dimon pointed out that the U.S. is heavily reliant on China for rare earths, aluminum, certain steels, and other equipment — a problem it should have addressed ten to fifteen years ago.
His words: "We cannot rely on China, cannot allow mercantilist behavior; we need to fix this at home. We made a mistake."
He cited the Iran conflict as proof: in a prolonged real war, the U.S. currently lacks the production capacity to defend itself. This means → in his logic, the supply-chain issue is not just about trade — it is the floor of national defense.
What is JPMorgan itself doing about it?
In October, JPMorgan launched a $1.5 trillion, ten-year "Security and Resilience Initiative."
It targets critical minerals, advanced manufacturing, energy, defense, AI, and quantum computing — every sector Dimon calls vital to U.S. economic security.
This reflects a CEO who is not just sounding alarms but backing the thesis with real capital: he is betting these sectors will be a core variable in global asset pricing for decades to come.
Content is for reference only, not financial advice.