JP Morgan CEO Jamie Dimon: "US Boom Will Last Until 2023"

Disaster Relief Funds and Revenge Spending Surge
"Will Lead to a US Goldilocks Economy"

▲Jamie Dimon, CEO of JP Morgan [Image source=Reuters News]

[Asia Economy Reporter Kwon Jae-hee] JPMorgan CEO Jamie Dimon says "US Goldilocks economy will last until 2023"

Jamie Dimon, CEO of JPMorgan Chase, the largest bank in the United States, has forecast that the US economic boom will continue until 2023. It is expected that government stimulus measures to recover the economy hit by COVID-19, combined with pent-up consumer spending due to lockdowns, will drive the US economic boom.

According to the Wall Street Journal (WSJ) on the 7th (local time), Dimon stated in his annual letter to shareholders that "there is no doubt that the US economy will experience a boom due to additional government disaster relief payments, massive government deficit spending, quantitative easing, the new infrastructure law, successful vaccines, and the end of the pandemic."

He added, "US consumers have used government disaster relief funds to reduce debt to the lowest level in over 40 years and increase savings," and predicted, "As COVID-19 lockdowns end, pent-up consumer spending will explode."

Dimon said, "Such strong consumer power, expanded vaccine distribution, and the Biden administration's $2.3 trillion infrastructure plan will lead the US to a 'Goldilocks' economy," and forecasted, "This boom will continue until 2023." Goldilocks refers to an ideal economic situation where there is high growth without inflation.

Dimon also believes that tax increases will accompany the economic boom. He said, "Taxes will rise," and argued, "Changes in corporate tax rates should be reasonable and gradual to allow the US to remain competitive with other countries."

However, Dimon added, "If inflation rises rapidly to the point where interest rates must be raised early or if variant viruses spread, it could threaten the optimistic economic outlook." Bloomberg News reported that this 65-page letter is the longest annual letter from Dimon.

Meanwhile, Dimon, who has led JPMorgan Chase since 2005, is regarded as the only CEO of a major Wall Street bank to survive the global financial crisis.