In his annual letter to shareholders, JPMorgan Chase CEO Jamie Dimon says the US economy is poised to come roaring back from the coronavirus crisis over the next two years.
According to Dimon, hefty government spending and consumers’ pent-up savings have primed the nation for an economic explosion that will likely stretch into 2023.
“I have little doubt that with excess savings, new stimulus savings, huge deficit spending, more [quantitative easing], a new potential infrastructure bill, a successful vaccine and euphoria around the end of the pandemic, the US economy will likely boom,” Dimon wrote in the 66-page letter released Wednesday.
“This boom could easily run into 2023 because all the spending could extend well into 2023.”
Dimon said the feds’ aggressive response to the pandemic-induced downturn would produce much stronger growth than that seen in the years after the Great Recession that he led JPMorgan through.
“I hope there is extraordinary discipline on how all of this money is spent,” he wrote. “Spent wisely, it will create more economic opportunity for everyone.”
Dimon’s letter struck a much more optimistic tone than last year’s annual letter, which predicted that COVID-related lockdowns and soaring unemployment would plunge the US into a “bad recession.”
Unemployment numbers jumping
The number of workers seeking unemployment benefits stubbornly jumped again last week even amid hopes that the labor market was getting back on track.
Last week’s 744,000 initial jobless claims brought the total for the COVID-19 pandemic to about 79 million.
New filings have ticked up for two consecutive weeks after dropping below the pre-coronavirus record of 695,000 in mid-March.
Weekly jobless claims have bounced up and down in recent weeks while struggling to stay below the pre-pandemic record after a year of painfully high readings.
The four-week moving average, which smooths out the volatility, also ticked up to 723,750 a week after reaching its lowest level since March 2020, when the pandemic first gutted the American ec