Jamie Dimon is volatile on the US economy, at least for the next few years.
Dimon, CEO and long-serving president of JPMorgan Chase, sees strong future growth for the world’s largest economy in response to the US government’s response to the coronavirus epidemic that has plagued many consumers. Stuffed money according to his annual shareholder letter.
“I have little doubt that surplus savings, new stimulus, large deficit spending, greater QE, a potent new infrastructure bill, successful vaccines and a sense of end euphoria.”; The outbreak of the US economy will grow, “Dimon said in the letter.” This boom could easily run into 2023, as all spending could extend well into 2023. “
Dimon, who ran JPMorgan through the 2008 financial crisis, helped build the largest bank in the United States with assets, pointing out that the size of government spending during the pandemic exceeded the previous crisis response. He said the long-term effects of the reopening will not be known until years into the future, as it will take time to review the quality of government spending, including the bill. President Joe Biden’s $ 2 Trillion Infrastructure
“Spending wisely creates more economic opportunities for everyone,” he said.
Dimon, 65, highlights familiar topics for the country’s most famous banker watcher: He promotes JPMorgan’s efforts to create economic opportunities for Americans left behind, highlighting the threat. Continued dominance of US banks from fintech and big tech players. And comment on public policy and the role of organizations to help bring about change.
While Dimon called the stock market valuation “Relatively high,” he said, multi-year growth could make it logical to current levels, as markets are priced based on economic growth and the surplus savings that put them into equity, he said, “there is.” Bubble and speculation “in certain parts of the market. But didn’t say exactly where
On the other hand, in this booming situation, it is difficult to correct the US debt price. (Most people view the 10-year bond as an important reference point for US debt), ”Dimon said.“ This is due to two factors: first, the large supply of debt that has to be absorbed, and second, the possibility. It is unreasonable that inflation will not be temporary. “
While he is confident in the near future of the economy. But there are also serious challenges ahead for the United States, Dimon said.The country has been put to the test before – although the conflict started with the civil war, the Great Depression and social change in the 1960s and 1970s, he said.
“In each case, America’s strength and resilience strengthened our position in the world, especially compared to our big competitors,” Dimon said.
The past year has highlighted challenges for US institutions, elected officials and their families as our country’s rivals see “Countries torn and disabled by politics, racial and income inequality – and countries that cannot harmonize government policies. (Finance, finance, industry, governance) with any consistent means to achieve national goals “
In the end, the country needs “Overcome differences and our personal interests and act for the better,” Dimon said.
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