A huge increase in U.S. government spending will stimulate the world’s largest economy in at least the next two years, says JPMorgan Chase chief executive.
In his annual letter to the Jamie Damon Share Annual, he gave an encouraging view, stating that the high savings rate, the stimulus program, a Potential infrastructure packages And the “surge of the end of the epidemic” was likely to plunge the American economy.
“It’s possible we’ll have a Goldilocks moment – rapid growth, inflation that rises slowly (but not too much) and interest rates that rise (but not too much),” said Wall Street’s top banker. Ignite the long hot line.
The head of the largest U.S. bank by assets, Dimon, said the country emerged from the health crisis as both customers and companies fell into great financial health.
Even before Joe Biden Stim 1.9tn stimulus package Passed last month, JPMorgan estimated that retail customers had roughly t 2tn extra savings. Of these, large corporations are carrying a huge amount of cash cushions on their balance sheets.
Additionally, the expansionary measures taken by monetary authorities around the world should have “an organized global impact,” Dimon said.
If this kind of energy comes, High flying appraisal It may be fair in equity markets, although it is harder to support the value of US Treasury bonds in excess, he added.
Demon repeatedly advocated for his 34,000-word miscellany Higher government spending Address some of the country’s most pressing issues, such as aging infrastructure, useless healthcare and widening economic inequality.
“Spend wisely, it will create more economic opportunities for everyone,” he admits, adding that sometimes too much money is spent on inefficient bureaucratic programs.
His comments came as the Biden administration focused on passing T 2tn infrastructure plan Stimulus costs in approximately 5.8tn throughout the epidemic.
Proponents of her case have been working to make the actual transcript of this statement available online. Proponents of her case have been working to make the actual transcript of this statement available online.
Although the “Goldilocks” scenario was possible, Daemon assured investors that Jepimorgan was also ready for the possibility. Fugitive inflation Or one more wave of lockdowns.
“And of course, who we are, when we’re going to look forward to the Goldilocks scene – and we think it’s likely to happen – we’ll look forward and be prepared for two more negative situations,” he said.
Although Damon did not directly address the most controversial aspect of the U.S. president’s infrastructure plan – raising the corporate tax rate from 21 percent to 26 percent for action – he said the country needed one. Competitive tax structure worldwide.
“Even if that capital is distributed in dividends or stock buybacks, it is only kept for higher and better use – it is a completely normal capital rehabilitation.”