In his annual letter to shareholders released Wednesday, JPMorgan CEO Jamie Dimon laid out his vision of strong growth in the U.S. economy in the years ahead, fueled by pent-up consumer savings, aggressive stimulus spending, easy Federal Reserve policy and a strong vaccine rollout.
Dimon acknowledged that the course of the economy is still uncertain, but added that an economic “Goldilocks moment”—strong growth alongside slow-climbing inflation and interest rates—could be around the corner.
He also called for more spending on education and infrastructure spending, which “may very well mean higher taxes for the wealthy.”
“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 wrote. “This boom could easily run into 2023 because all the spending could extend well into 2023.”
Dimon’s 2021 letter is much more optimistic than last year. In his 2020 message to shareholders, Dimon warned of “a bad recession combined with some kind of financial stress similar to the global financial crisis of 2008.”
What To Watch For
Big banks including JPMorgan, Bank of America and Citigroup are slated to report their first quarter earnings next week.