JP Morgan JPM 1.38%
Chase & Co. Chief Executive Jamie Dimon believes the American economy is booming. But warned the government could be wasted if the ambitious spending plans were not held accountable.
The leader of the country’s largest bank reiterated his latest optimism that the economy is poised to stem from a flaming epidemic and growth that could extend to 2023, Dimon said in recent weeks. Come that the government’s big stimulus, the widespread release of vaccines And the actions of his corporate clients and clients convinced him of the “Goldilocks” economy that the possibility of rapid growth coupled with mild inflation.
“The boom is a good thing. Employment is a good thing Growth is good Everyone should enjoy it, ”he said Tuesday. Dimon was interviewed at The Wall Street Journal CEO Council Summit by editor-in-chief Matt Murray.
Given some of Mr Dimon̵7;s strength, JPMorgan now expects a full recovery of U.S. gross domestic product this quarter from a fall in the epidemic earlier than previously anticipated. The bank now predicts second-quarter GDP will be 0.2 percent higher than it was at the end of 2019, compared to the previous forecast of a 1.9 percent drop, a 12-month growth forecast. Ahead, it is now more than twice what the bank had expected three months ago, expanding to 4.3 percent by the second quarter of 2022.
Still, Mr Dimon pointed to signs he was unsure of his longevity and the impact of that growth. He said small businesses and low-income workers suffered disproportionately. Inflation is likely to increase. The stock market was priced at record highs with too much money in their pockets.
Dimon also said government spending aimed at driving economic growth would decline if not well designed with measurable results. For example, a highway plan should detail how many miles it will cost, how much it will cost and when, he said. Offering free tuition for community colleges is ineffective unless the school is measured by their graduation rate and job placement rate.
“Our government, when they point out the issues we should do better, they are right,” Dimon said. “But if we put in a lot of money and it is wasted again… we have to run into problems. big”
He added that government regulations have slowed growth over the years for small businesses and others.
“The country that can be made is a red tape country,” he said.
Mr Dimon is often asked how interest in policy and administration will get him to take over, a thought he has been fired over the years. On Tuesday, he said he hoped to change the way the government talks about public spending plans.
Dimon has started out with the outbreak, Dimon is keen to see other signs of normalcy.More JPMorgan employees will return to office from this month, although Dimon admits they are unhappy about it. But distant offices, he said, are not working to create ideas, maintain corporate culture, compete for clients or “for those who are in a rush.”
“We want people to come back to work and my view is September. October, it will be the same as before,” said Mr. Dimon.
For Mr. Dimon, the journey is better than the alternatives.
“I’m going to cancel all my Zoom sessions,” he added. “I’m done.”
Write to David Benoit at firstname.lastname@example.org.
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