Dimon stated that margin debt is at an all-time high, including hidden forms of borrowing through prime brokerages, hedge funds, exchange-traded funds, and Treasury arbitrage strategies. He noted that high leverage increases the risk of a single investor or fund triggering broader volatility. He cited the recent losses of AI-focused hedge fund Situational Awareness as an example, for which JPMorgan was a prime broker, but clarified that he does not consider the current leverage a systemic threat like the 2008 financial crisis. Dimon also warned that structural demand for capital could reignite inflationary pressures, pointing to government deficits, infrastructure investment, and global rearmament as forces supporting higher long-term interest rates.