Jamie Dimon’s letter showed support for high government spending
JP Morgan chief Jamie Dimon said a significant increase in US government spending will boost the US economy in the next 24 months.
Dimon provided a positive outlook in his annual letter to shareholders of his company. He noted that high savings rates, stimulus programs, potential infrastructure packages, and the mood around the pandemic will come to an end and be combined to drive the US economy.
“There could be a Goldilocks moment — fast growth, mildly moving inflation rates, and rising interest rates (not too much),” the banker said. It leads to long-term growth.
Dimon said that both businesses and consumers are in good condition as the US begins to emerge from the coronavirus crisis.
Before the President’s $1.9TRN stimulus package passed in March, the investment bank proposed that retail customers would store around 2 truuns with additional savings.
Dimon also said the expansion policies implemented by central banks around the world “complexize the global impact.”
If Dimon’s boom forecasts come true, a highly rated stock market could be justified, but it would be difficult to support Treasury bond prices due to an oversupply of US debt. He said.
An important theme in Dimon’s letter is to support high government spending as a tool to address some of the country’s problems, such as aging infrastructure, expensive healthcare, and economic inequality. did.
“Expanding wisely will create more economic opportunities for everyone,” he said, including how it may not be effective when bound by bureaucracy. He said he was there.
Dimon’s point comes as Joe Biden is about to pass a $2TRN infrastructure plan following the $5.8TRN stimulus outlet designed to stimulate the economy during the pandemic.
