JPMorgan CEO Jamie Dimon calls Fitch Ratings U.S. downgrade 'ridiculous' but says it 'doesn't really matter'

The Fitch Ratings downgrade of the United States' semipermanent recognition standing yet doesn't matter, JPMorgan Chase CEO Jamie Dimon told CNBC connected Wednesday.

"It doesn't truly substance that much," due to the fact that it's the market, not standing agencies, that determines borrowing costs, Dimon told CNBC's Leslie Picker.

Still, it's "ridiculous" that countries including Canada person higher recognition ratings than the U.S. erstwhile they beryllium connected the stableness created by the U.S. and its military, Dimon added.

"To person them beryllium triple-A and not America is benignant of ridiculous," Dimon said. "It's inactive the astir prosperous federation connected the planet, it's the astir unafraid federation connected the planet."

Fitch downgraded the country's standing to AA+ from AAA on Tuesday, pointing to "expected fiscal deterioration implicit the adjacent 3 years," an erosion of governance and a increasing wide indebtedness burden.

The bureau enactment the U.S. standing connected ticker successful May aft members of Congress butted heads implicit raising the debt ceiling and brought the state to near-default.

"We should get escaped of the indebtedness ceiling," Dimon said. "It's utilized by some parties" successful ways that sow uncertainty for markets, helium said.

In the wide-ranging interview, Dimon touched connected topics including artificial intelligence, the U.S. economy, slope regularisation and geopolitics.

He called artificial quality exertion specified arsenic ChatGPT "a crippled changer" that volition apt assistance aboriginal generations unrecorded longer, amended lives.

"It needs to beryllium done right," Dimon added. "I bash interest astir it due to the fact that atrocious guys are going to usage it too."

The U.S. economy, helium said, is being supported by user and concern strength, debased unemployment and steadfast equilibrium sheets.

"It's beauteous good, adjacent if we spell into recession," Dimon said. "The tempest unreality portion is inactive there," helium added, referring to a warning helium gave past twelvemonth connected the economy.

What worries Dimon astir are the geopolitical risks created by the Ukraine warfare and the Federal Reserve's effort to rein successful its equilibrium expanse known arsenic quantitative tightening, helium said.

Dimon lambasted regulators' efforts to tighten standards connected U.S. banks, saying the proposals unveiled past week were "hugely disappointing." At 1 point, helium held up a illustration showing the web of regulators that banks woody with.

Banks volition beryllium forced to clasp much superior arsenic a cushion against a assortment of risks, which volition impact consumers, due to the fact that the manufacture volition cede much products to nonbank players, Dimon warned. That's what happened successful the U.S. owe market, which is dominated by firms including Rocket Mortgage.

Part of the changes impact banks ditching interior hazard models for much standardized versions from the Federal Reserve.

"If I was the Fed, I'd beryllium cautious astir saying their models are perfect," Dimon said. "Remember, their models didn't amusement ostentation and didn't amusement 5% involvement rates."