JPMorgan CEO Jamie Dimon is optimistic the pandemic will end with a U.S economic rebound that could last at least two years, according to Bloomberg. Excess savings, new stimulus, huge deficit spending, more quantitative easing, potential infrastructure bill, vaccinations, and the end of the pandemic are factors in his assessment.
Dimon says unprecedented federal rescue programs have averted economic deterioration and blunted unemployment.
The analyst says lenders also benefited from the rescue stimulus, building up buffers against future loan losses that helped them perform well in stress tests.
Threats to Dimon’s projections include virus variants and a rapid or sustained jump in inflation that prompts rates to rise sooner.
Dimon warned shareholders that the banking industry’s disruption by technology is finally at hand, with shadow lenders gaining ground while traditional banks shrink.
The analyst also warned of wide-ranging ‘dysfunction’ over inequities created by the pandemic which he believes has cut a percentage point off the U.S growth rate.
Dimon, 65, is the most prominent executive in global banking, serving as a spokesman for the industry and has run JPMorgan since the end of 2005.
