Jamie DimonAccording to the U.S., the country is on track for its best economic growth in many decades.
Dimon said that the year will see the most growth since the Great Depression, speaking to Bertha Coombs of CNBC during the 40th Annual J.P. Morgan Healthcare Conference. Next year, it will also be very good.
Dimon, long-serving chairman and CEO JPMorgan ChaseAccording to him, his confidence comes from America’s strong balance sheet. JPMorgan has relationships with nearly half the households in America and is therefore the U.S.’s largest bank.
Dimon claimed that “The consumer balance sheets have never been better; consumers are spending 25% less today than pre-Covid.” “Their debt service ratio is higher than ever since we have been keeping records for over 50 years.”
Dimon stated that growth would occur even if the Fed raises interest rates more than what investors anticipate. Goldman Sachs predicted four rate hikesDimon expressed surprise that the central banks only raised four times in this fiscal year.
Dimon explained that it is possible for inflation to be worse than people think. Rates are raised more frequently than people think. I would not be surprised to see four more increases.
Dimon stated that although the economy is strong overall, the Fed will likely bring a turbulent year to stock market investors.
Dimon stated that the market was different. “We expect that there will be a lot volatility as the rates go up, and people redo their projections, so we are expecting this market to have some volatility.”
Dimon said, “If we are lucky, we can slow down the Fed and we’ll experience what they call a ‘soft landing’.”
The bank was forcedBecause of the widespread spread of Covid-19, the company decided to make its annual conference in healthcare a virtual one.
The story continues to develop. Stay tuned for new updates.
