JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon believes the COVID-19 pandemic will end with a U.S. economic rebound that could last for over two years, Bloomberg reported.
- In his annual letter to shareholders, Dimon said the boom could easily run into 2023 on a successful vaccination program and the euphoria around the end of the pandemic.
- Other likely drivers of the boom are excess savings, new stimulus savings, huge deficit spending, more quantitative easing, and a new potential infrastructure bill.
- Dimon said the factors could add up to a Goldilocks moment where growth is fast and sustained while inflation ticks up gently, but downside risks remain.
- Threats include virus variants and a rapid or sustained jump in inflation that prompts an earlier increase in rates.
- The executive hinted on acquisitions in the future, as he said fintech is an area where some of the bank’s cash could be put to work.
- Dimon also expects the firm’s need for real estate to drop significantly in the future as remote working outlasts the pandemic. It could require some 60 seats for every 100 employees under a hybrid model.