[ad_1]
Jamie Dimon is optimistic about the US economy – at least for the next several years.
Longtime CEO and Chairman of JPMorgan Chase Dimon predicts strong growth for the world’s largest economy, thanks to the U.S. government’s response to the coronavirus pandemic that has left many consumers overwhelmed with savings, his letter said annual to shareholders.
“I have no doubt that with surplus savings, new stimulus economies, huge deficit spending, more QE, a potential new infrastructure bill, a successful vaccine and the euphoria towards the end of the pandemic , the US economy is likely to explode, ”Dimon said in the letter. “This boom could easily last until 2023 as all spending could extend until 2023.”
Dimon, who managed JPMorgan during the 2008 financial crisis, helping to create America’s largest bank by assets, stressed that the scale of government spending during the pandemic far exceeds the response to that previous crisis. The long-term impact of reopening the boom will only be known in the coming years, he said, as it will take time to verify the quality of government spending, including the infrastructure bill. $ 2 trillion proposed by President Joe Biden.
“Well spent, it will create more economic opportunities for everyone,” he said.
Dimon, 65, brought up a range of topics familiar to observers of the country’s most prominent banker: He promoted JPMorgan’s efforts to create economic opportunities for Americans who have been left behind, highlighted threats. on the domination of American banks by fintech and major technology players. , and spoke on public policy and the role of business in contributing to change.
While Dimon called stock market valuations “pretty high,” he said a multi-year boom could justify current levels as markets assess economic growth and the excess savings that are found in stocks. He said there was “foam and speculation” in parts of the market, but did not say where exactly.
“Conversely, in this boom scenario, it’s hard to justify the price of US debt (most people see the 10-year bond as the key benchmark for US debt),” Dimon said. “This is due to two factors: first, the huge supply of debt that must be absorbed; and second, the not unreasonable possibility that an increase in inflation will not be only temporary.”
While he is optimistic about the immediate future of the economy, there are serious challenges ahead for the United States, Dimon said. The country has already been tested – although conflicts began with the Civil War, the Great Depression and the societal upheaval of the 1960s and 1970s, he said.
“In each case, America’s power and resilience have strengthened our position in the world, especially against our major international competitors,” said Dimon. “This time may be different.”
The past year has brought to light the challenges facing America’s institutions, elected officials, and families, as our nation’s rivals see a “nation torn and crippled by politics, as well as racial and income inequality – and a country incapable of coordinating government policies (fiscal, monetary, industrial, regulatory) in any coherent manner to achieve national objectives. “
The country must ultimately “go beyond our differences and our personal interests and act for the greater good,” said Dimon. “The good news is that it can be fixed.”
This story is developing. Please come back for updates.
[ad_2]
Source link