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JPMorgan Chase CEO Jamie Dimon says that the boom will “run to 2023”

Consumer savings, a stimulus boost, Biden’s infrastructure program, good vaccinations, and “euphoria at the end of the pandemic” are all factors, according to Dimon.

Dimon: JPMorgan Chase: Central banks doing a lot, we need more fiscal policies: Jamie  Dimon, JPMorgan Chase - The Economic Times

According to his annual shareholder report, Jamie Dimon, the long-serving CEO and chairman of JPMorgan Chase sees solid growth ahead for the world’s largest economy, thanks to the US government’s response to the coronavirus pandemic, which has left many customers flush with savings.

“I have little doubt that the U.S. economy will undoubtedly boom with surplus savings, new stimulus savings, massive deficit spending, more QE, a new future infrastructure bill, a good vaccine, and euphoria at the end of the pandemic,” Dimon wrote. “This boom will easily last until 2023 because all of the investment will last that long.”

The size of government spending during the pandemic greatly exceeds the response to the previous financial crisis, according to Dimon, who led JPMorgan through the 2008 financial crisis, helping to establish the largest U.S. bank by assets. The long-term effect of the reopening boom won’t be known for years, he said, because determining the quality of government spending, such as President Joe Biden’s proposed $2 trillion infrastructure bill, would take time.

“It will generate more economic opportunities for everyone if it is spent wisely,” he said.

Dimon: JPMorgan's Jamie Dimon Sees a Boom Coming - The New York Times

Dimon, 65, spoke on a variety of topics familiar to those who follow the country’s most powerful banker: he praised JPMorgan’s efforts to create economic opportunities for those who have fallen behind, he highlighted challenges to U.S. banks’ dominance from fintech and Big Tech companies, and he opined on public policy and the role of businesses in effecting change.

While Dimon described stock market valuations as “very high,” he also suggested that a multi-year bull market could justify current levels because markets are pricing in economic growth and excess savings that flow into equities.

Although Dimon is optimistic about the economy’s near future, he acknowledges that the United States faces significant challenges. He said the nation has been put to the test before, beginning with the Civil War, the Great Depression, and the social upheaval of the 1960s and 1970s.

“America’s might and resiliency improved our place in the world in each case,” Dimon said, “particularly in relation to our major international competitors.” “Things may be different this time.”

As rivals see a “nation broken and crippled by politics, as well as ethnic and income inequality — and a country unable to align government policies (fiscal, monetary, manufacturing, regulatory) in any cohesive way to achieve national goals,” the past year illustrated problems for U.S. agencies, elected leaders, and families.

In the end, the nation must “move beyond our differences and self-interest and act for the common good,” according to Dimon. “The good news is that this is something that can be fixed.”

Inequality in education, “terrible” infrastructure, and “poorly built” social safety nets were also discussed.

“It’s difficult not to believe that these problems, taken together, have a huge negative impact on the great American economic engine,” Dimon said.


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