The JPMorgan Chase CEO believes the post-pandemic upswing could last several years.
The original purpose of the stimulus checks that have been distributed by the US government over the past year, as the name may imply, was to stimulate the economy in a period where regular commerce was at a notable low. These days, the payments have been given more appropriate names to signify their purpose of helping people over stimulating the economy, though the name “stimulus check” has remained as a colloquial term. The bottom line, though, is that we’re not going to get any major stimulation to the US economy until the pandemic is definitively over. Once that happens, though, it’s going to be a major upswing, at least according to JPMorgan Chase CEO Jamie Dimon.
“I have little doubt that with excess savings, new stimulus savings, huge deficit spending, more QE, a new potential infrastructure bill, a successful vaccine and euphoria around the end of the pandemic, the U.S. economy will likely boom,” Dimon said in an annual shareholder letter. “This boom could easily run into 2023 because all the spending could extend well into 2023.”
Indeed, once the country at large officially receives the green light to spend and consume as we once did, the sheer exuberance that many people will no doubt do so with will likely prompt an intense boom in US economic activity. However, while Dimon is optimistic and enthusiastic for the future of the economy, he did offer words of caution that getting to that point will likely be very difficult.
In a new letter to investors, Jamie Dimon, JPMorgan’s CEO, predicted an economic boom in the U.S. thanks to a combination of excess savings, deficit spending, a potential infrastructure bill, vaccinations and “euphoria around the end of the pandemic.” https://t.co/xaNiWEv99G
— The New York Times (@nytimes) April 7, 2021
The difficulties of the pandemic, in Dimon’s words, have highlighted the problems of a “nation torn and crippled by politics, as well as racial and income inequality — and a country unable to coordinate government policies (fiscal, monetary, industrial, regulatory) in any coherent way to accomplish national goals.”
Dimon cautioned that we need to “move beyond our differences and self-interest and act for the greater good,” but added a positive note, saying, “the good news is that this is fixable.”