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"I
have little doubt that with excess savings, new stimulus
savings, huge deficit spending, more QE (quantitative easing), 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 in his annual letter to shareholders
published on the bank's website.
"This boom could easily run into 2023 because all the spending
could extend well into 2023."
As head of the biggest U.S. bank, Dimon is widely seen as the
face of America's banking sector, and he used the letter to
share his views on the country's economic health and to press
for policies to help address inequality and improve the criminal
justice system.
The average U.S. consumer's finances are in "excellent shape,"
Dimon said, and the stock market's high valuations are
justified. The price of U.S. treasuries, however, are not, he
wrote.
The economic growth Dimon projects the United States could see
in the next two years will create opportunities to "deal with
issues stemming from inequality," Dimon wrote.
He called for raising the federal minimum wage, improving
training for jobs at high schools and colleges and making it
easier for people with criminal records to get jobs.
Dimon, who has called for higher taxes to pay for federal
stimulus, said corporations could support many of these
initiatives if the government adopted rigorous budgeting,
transparency and discipline when it comes to its spending.
"We must remember that the concepts of free enterprise, rugged
individualism and entrepreneurship are not incompatible with
meaningful safety nets and the desire to lift up our
disadvantaged citizens," Dimon wrote.
(Reporting By Elizabeth Dilts Marshall; Editing by Muralikumar
Anantharaman)
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