Jamie Damon said he is hopeful the epidemic will end with a U.S. economic recovery that could last at least two years.
“I have little doubt that additional savings, new stimulus savings, huge deficit spending, more QI, a new potential infrastructure bill, a successful vaccine towards the end of the epidemic and a surge will likely boost the U.S. economy,” JPMorgan Chase & Co. CEO said Wednesday. In the annual letter to the shareholders. “This sultry could easily run in 2023.”
Unprecedented federal rescue programs have stifled unemployment and averted further economic downturn, according to Damon, who said banks have entered the crisis stronger and have been able to help weather community storms. Although U.S. lenders also benefited from U.S. stimulus, they created a buffer against future loan losses and performed well in stress tests, he said.
Damon also pointed to U.S. customers who used stimulus tests to reduce reductions to the lowest level in 40 years and provided them as corporations as savers – the amount spent after the lockdown was “extraordinary.” He said the latest measures of quantitative easing have created more than a trillion dollars in deposits in U.S. banks, a portion of which could be disbursed, he said.
According to Daemon it could all add up to a Goldilocks moment, where inflation continues to rise and maintain momentum while rising slowly. Threats to those consequences include virus variants and a rapid or sustained jump in inflation that calls for rates to rise even faster.
In 655, Damon served as an industry spokesperson while leading one of the most prominent executives of global banking, both Wall Street and consumer nding. He has been running the company since late 2005, and is the only CEO to manage a large bank through the financial crisis.
The Heart5 page letter (a page of footnotes) is the longest yet in Damon, it came less than a week after he returned to work from emergency heart surgery in short form last year. As always, it is sensitive to issues ranging from economic control to discrimination and institutional racism in China.
Dimon, who created the largest and most profitable U.S. bank in history, also warned shareholders that the collapse of his industry by technology was finally at hand. Shade donors are gaining ground. Systemic banks are being hired for a narrow role in the financial system.
“From virtually every angle – banks face a lot of competitive threats,” he said. “Fintech and Big Tech are here … big time!”
The letter expands on what Demon has predicted over the years, this time announcing that such a threat has just arrived. He said financial-technology companies provide more usable, easy-to-use, fast and smart products. Shadow Bank – a group that includes investor funds and companies and online platforms that provide financial grants to customers – is also winning market share.
These groups have spread the growth of banks with some measures, often thanks to less control. He has done a “great job of easing customers’ pain points ”through smart online platforms, he said.
“While I am still convinced that JPMorgan Chase can grow and earn good income for its shareholders, the competition will intensify and we need to be faster and more creative,” the CEO wrote. “The acquisition is in our future and Fintech is an area where some of that cash can be used.”
He also touched on the bank’s future needs for real estate, hoping that it would be significantly reduced as the epidemic spread from afar. He said the bank may need about work0 seats for every 100 employees as some employees work under the hybrid model. He added that the donor still wants to build its new headquarters in New York City.
Despite a warning from Senate minority leader Mitch McConnell two days ago, corporate leaders should refrain from taking positions on divisive political issues, including Damon Wads immigration, healthcare and education.
“Our problems are not Democratic or Republican – nor are they solutions,” Daemon wrote. “Unfortunately, however, biased politics is hindering the design and implementation of collaborative policy, especially at the federal level.”
For all the brilliance of his economic outlook, Dimon found reason to mourn even more.
The deep inequality of the epidemic and their destructive effects have put it in the spotlight. He said the government’s ability to address issues such as healthcare and immigration has been lost.
“Americans know that something is terribly wrong, and they blame the leadership of this country: the elite, the powerful, the decision-makers – in government, in business and in civil society,” he wrote. “It’s perfectly appropriate. Who else should be responsible for this?”
He said right and left fuels are popular. “But populism is not a policy, and we cannot allow it to run another round of poor planning and bad leadership that will only make the situation in our country worse.”
The CEO even called it economically: he estimates that widespread “inefficiency” has slowed the U.S. growth rate by less than a percentage cut He suggested studying solutions abroad, hinting at apprenticeship programs in Germany, healthcare in Singapore and Hong Kong’s infrastructure.
Damon also reiterated the call for a national martial plan, citing US efforts to help West Bengal recover from World War II and address the structural challenges behind the country’s caste and economic crisis.
“America is going to work hard to solve the problem. But if we divide them into elements, we will find many effective solutions, “he said.” There is hope, including thoughtful analysis, common sense and realism. “
(Update with details related to bank real estate in paragraph 13, plans for growth in 21 years