Jamie Dimon is optimistic about the U.S. economy for at least the next few years.
Dimon, CEO and chairman of JPMorgan Chase, believes that many of the world’s largest economies will grow strongly in the future due to the US government’s response to the coronavirus pandemic. Dimon stated in his annual shareholder letter.
Dimon said in an interview: “I have no doubt that with large savings, new stimulus savings, huge deficit spending, more quantitative easing, new potential infrastructure bills, successful vaccines, and After the pandemic is over, the U.S. economy will likely prosper. This letter. “This kind of prosperity will easily last until 2023, because all expenditures may be extended to 2023. “
Dimon managed JPMorgan during the 2008 financial crisis and helped found the largest bank in the United States in the form of assets. He pointed out that the scale of government spending during the pandemic far exceeded the response to the previous crisis. He said that the long-term impact of the reopening boom will not be known until the next few years, because it will take time to figure out the quality of government spending, including the US$2 trillion infrastructure bill proposed by President Biden.
He said: “Using it wisely will create more economic opportunities for everyone.”
Dimon, 65, participated in a series of topics familiar to observers of the country’s most prominent bankers: he promoted JPMorgan’s efforts to create economic opportunities for abandoned Americans, emphasizing financial technology and Large technology companies threatened the dominance of Bank of America and chose the role of public policy and companies in promoting change.
Dimon called the stock market valuation “very high”, but he said that years of prosperity may justify the current level because the market is pricing in economic growth and excess savings, and thus enters the stock market. He said that “bubbles and speculation” existed in some markets, but he did not specify.
Dimon said: “On the contrary, in this boom, it is difficult to justify the price of U.S. bonds (most people believe that 10-year bonds are the key reference point for U.S. bonds).” “This is due to two factors: first. , Need to absorb a large amount of debt supply; secondly, the increase in inflation is not only temporary, this is an unreasonable possibility.”
Dimon said that although he is optimistic about the near-term prospects of the economy, the United States faces severe challenges. He said the country has been tested before-although the conflict started with the Civil War, the Great Depression and the social unrest of the 1960s and 1970s.
Dimon said: “In each case, the strength and resilience of the United States have strengthened our position in the world, especially in comparison with our main international competitors.” “This time may be different.”
The past year has highlighted the challenges faced by U.S. institutions, elected officials, and families, as U.S. competitors have seen “a country paralyzed and paralyzed by politics, race, and income inequality, and this country cannot coordinate government policies (fiscal , Currency, industry,, regulations) in any consistent way to achieve national goals.”
Dimon said that the country ultimately needs to “go beyond our differences and self-interests and act for the greater good.” “The good news is that it can be resolved.”
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