JPMorgan CEO Jamie Dimon warned on Monday that investors were too complacent as news in the market that the U.S. lost its final triple credit rating amid concerns about the federal government's booming debt pile.

Credit rating agency Moody on Friday stripped Washington of its first-class rating, lowering the world's largest economy from one tier to AA1 and becoming the last of the three major agencies to lower its triple rating of the United States.

The announcement was unsettling on Monday morning, but the stock market had recovered by the end of the day.

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Dimon warned against complacency when he spoke at JP Morgan's annual Investor Day meeting in New York. "We have a huge deficit; we have a central bank that is almost complacent. You all think they can manage all of this. I don't think (they can) solve it," he said.

Dimon said he saw "very complacency" and added that he believed the possibility of scattering - a recession with rising prices - was much higher than investors' beliefs.

Moody's downgrade comes as Donald Trump tries to push his "big, beautiful" tax and spending bill through Congress, and Moody's said it expects the U.S. budget deficit to continue to decline.

"The U.S. government and Congress failed to reach a consensus on a trend to reverse large annual fiscal deficits and growing interest costs," Moody's said, announcing a downgrade. “We believe that the years of reduction in material reductions in mandatory spending and deficits will be due to the fiscal recommendations currently under consideration.”

Trump administration officials are trying to downplay the importance of setbacks. "Moody's is a lag indicator," Treasury Secretary Scott Bessent told the media on Sunday on NBC.

The US President himself remains silent about relegation. He used posts on his truth social platform to criticize celebrities including Beyoncé and Bruce Springsteen, who condemned Trump on the Manchester stage last week in support of his political rivals.

House Republicans raised Trump’s tax cuts and spending plans from key committees in a rare Sunday night vote. It is estimated that the proposed bill could increase the U.S. debt accumulation by $3.62 billion over the next decade.

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On Wall Street, the benchmark S&P 500 fell in early trading and then recovered higher losses, while the technology-centric Nasdaq was also flat after reversing the early decline. London's FTSE 100 grew by 0.2%.