Citadel Securities Exec. Warns Against Complacency About 'Ticking' Fiscal Deficit Bomb - 'We Can Work This Out'

Citadel Securities President Jim Esposito described the U.S. fiscal deficit as a 'ticking time bomb' on Thursday, even as President Donald Trump's tax bill threatened a further spike in debt levels.

According to a Bloomberg report, Esposito said the Trump administration's response to the situation will be“super important.”

“The stock of debt and the budget deficit is a ticking time bomb. No one is smart enough to predict when exactly it will rear its ugly head,” he reportedly said at the Piper Sandler Global Exchange & Trading Conference.

Late last month, JP Morgan CEO Jamie Dimon had warned that there would be a crack in the bond market soon as public debt increases to staggering levels.

Esposito, who joined Citadel from Goldman Sachs last year, reportedly said,“We've been talking about this for more than 20 years, so in some ways the market's gone into complacency, but over a multi-year period, we can work this out.”

Concerns over the fiscal deficit have increased further with President Trump's signature tax reform bill, which is expected to add $2.4 trillion to the current debt pile of $36 trillion.

U.S. bond markets have also been upended by Donald Trump's tariffs, which have raised concerns about U.S. economic growth.

On Thursday, the benchmark 10-year Treasury yield rose by more than three basis points to 4.402%, while the 2-year yield grew more than five basis points to 3.93%, according to a CNBC report. The 30-year long bond yield was flat at 4.888% ahead of crucial payrolls data.

However, Esposito said that the U.S. will likely avoid a situation like the UK-bond market meltdown following Prime Minister Liz Truss's unfunded budget cuts.

The Invesco QQQ Trust Series 1 (QQQ) has risen 2% this year while the SPDR S & P 500 ETF (SPY) has gained 0.6%.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

MENAFN06062025007385015968ID1109644993