JPMorgan CEO Predicts Economic Growth

Jamie Dimon is Optimistic About US Economy

JPMorgan Chase (JPM) Chairman and CEO Jamie Dimon expressed optimism about the US economy in his annual letter to shareholders. The leader of one of the world’s largest banks pointed to government stimulus, COVID-19 vaccinations, and a potential infrastructure bill as reasons to be upbeat.

Over the past year, the US government has approved a series of stimulus packages, which Dimon says will be a big driver of economic growth. “This boom could easily run into 2023 because all the spending could extend well into 2023,” Dimon wrote.

Stock Prices High But Justified

Dimon also weighed in on stock market valuations, which he called “quite high.” Nevertheless, the CEO argued a coming economic boom could mean the lofty valuations are justified. Investors are pricing in growth and excess money sitting in consumers’ savings accounts, he said.

JPMorgan’s Chief did warn it will be difficult to justify US debt prices if the boom he is predicting plays out. “This is because of two factors,” wrote Dimon. “First, the huge supply of debt that needs to be absorbed; and second, the not-unreasonable possibility that an increase in inflation will not be just temporary.”

Looking Ahead

While Dimon is optimistic about the US economy in the coming years, he expressed concerns about the longer-term given the current state of US politics. Dimon described the country as “torn and crippled by politics, as well as racial and income inequality—and a country unable to coordinate government policies (fiscal, monetary, industrial, regulatory) in any coherent way to accomplish national goals.”

To overcome this period of division, the executive said Americans need to move beyond thinking about their differences and self-interests. “The good news is that this is fixable,” Dimon added.

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