CEO of JPMorgan Chase & Co. Jamie Dimon delivered his thoughts on the U.S. economy in a letter on Wednesday. Dimon expressed optimism that the pandemic would conclude with a minimum two-year economic boom in the United States.
In a 65-page letter to his shareholders, Dimon said, “with excess savings, huge deficit spending and QE, a new potential infrastructure bill, a successful vaccine and euphoria around the end of the pandemic, the U.S. economy will likely boom. This boom could easily run into 2023.”
Federal COVID-19 relief programs, according to Dimon, have reduced unemployment and averted further economic collapse. He also mentioned consumers in the U.S. will have an “extraordinary” amount of purchasing power once the pandemic subsides. The sudden increase in purchasing power is due to consumers using stimulus checks to lower debt, putting the checks towards their savings.
The letter is Dimon’s longest letter yet at 65 pages, and it focuses on topics ranging from finance to geopolitics to inequality. In addition to expressing an optimistic outlook for the U.S. economy, he also discussed competitive threats to the banking industry.
In his letter, he warned shareholders that his industry faces disruption by technology. He said, “Banks have enormous competitive threats from virtually every angle. Fintech and Big Tech are here… big time!” If JPMorgan wants to remain competitive in the age of disruption, they will need to be faster and more creative.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.