Jamie Dimon sees relief from COVID-19, vaccine fueling U.S. rebound this summer

COVID-19 vaccinations, combined with financial assistance from Congress, have the potential to jumpstart the U.S. economy by this summer, says Jamie Dimon, CEO of JPMorgan Chase.

“I think you will have a better second half because you have the vaccine coming up and you have fiscal stimulus,” Dimon told reporters on Friday after JPMorgan released stronger-than-expected financial results for the end. from last year. “At the end of the day, there is a lot of pent-up demand and hopefully optimism that we’ll get over this mess.

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His hypothesis, if confirmed, would mean welcome relief by the second half of 2021 from a grim recession accompanying a pandemic that has killed more than 388,000 Americans – a higher death toll than in any other country, closed by hundreds of thousands of small businesses and skyrocketing unemployment.

An early stimulus package that sent checks for $ 1,200 to many taxpayers and a follow-up at the end of last year helped Americans who really need the help, “the unemployed, small businesses , some of the lower income people who hopefully will have a much stronger economy, ”Dimon added.

America’s largest lender, JPMorgan Chase, has a unique perspective on the country’s economic health and sentiment.

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Congressional action on the second coronavirus relief package and advances in vaccines allowed the New York-based company to free up $ 2.9 billion in loan reserves in the last three months of 2020 , although it still retains a sizable $ 30 billion bulwark against what leaders have called “significant near-term economic uncertainty.”

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It remains to be seen how further relief measures under the administration of Democratic President-elect Joe Biden will affect society and other U.S. banks.

The former Delaware vice president and senator, due to be inaugurated in less than a week, detailed a $ 1.9 trillion spending proposal on Thursday evening, a proposal he has seen vital to helping Americans to overcome the coronavirus crisis.

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“Some 400,000 small businesses have closed their doors for good,” Biden said Thursday in Wilmington, Delaware. “A crisis of deep human suffering is in plain sight, and there is no time to waste.”

If approved by Congress, his plan would support optimism fueled by preliminary, if not interrupted, vaccine distribution from drugmakers, including a partnership between Pfizer and BioNTech and prescription drugmaker Moderna.

Initial studies of a third vaccine, from Johnson & Johnson, show that recipients develop immunity after a single dose, compared to the two needed for each of the previous inoculations.

“It looks like by June or July you’re going to get a lot of people vaccinated. People might need a few months after that to feel comfortable going back to work,” Dimon said. “You see people who want to go back to work if they feel safe, and the vaccine will be a big part of that.”