U.S. economy is "booming," JPMorgan’s Dimon says

Investing.com - The U.S. economy is “booming” thanks partially to higher corporate profits and low unemployment, although ongoing geopolitical tensions present risk to the wider outlook, according to JPMorgan Chase CEO Jamie Dimon.

Speaking at the Wall Street Journal’s Leadership Institute on Monday, Dimon argued that “it’s good times” for the world’s largest economy.

“Corporations are not overleveraged. Consumers are not leveraged. Unemployment is really low,” Dimon said.

“You can argue whether wages are going up enough for the lower end, probably not, but they have jobs. And that is the single sole most important thing for most people: that they have a job and they go to work.”

Dimon added that a surge in spending on artificial intelligence infrastructure is bolstering growth. He also played down concerns over the inflationary impact of the runaway expenditures, saying that while prices may go up “at this point,” the rapid AI buildout could eventually have a “deflationary effect.”

Asked whether the economy’s solid growth one day give way to a bust, Dimon said that “of course, one day we will have a cycle.” However, he declined to say when he expects a potential downturn to occur.

Dimon flagged the possible risks to the economy from current global conflicts. The Iran war, which began in late February, has rattled financial markets, sent oil prices soaring, and sparked fears of inflation-driven central bank interest rate hikes. Meanwhile, the Ukraine war has now lasted longer than World War I.

“[T]hese wars develop in a way that you don't expect, and they can cause huge disruption to populations, to who allies with who, and obviously it's the world economy,” Dimon said.

The comments come after JPMorgan Chase last week posted third-quarter profit that was weaker than anticipated, as the largest U.S. bank was hit by a slowdown in fixed-income markets revenue. In a statement, Dimon said that while markets revenue and investment-banking fees rose at a “mid-teens rate,” client activity “did moderate somewhat during the quarter.”

Dimon also warned at the time that “large fiscal deficits, sticky inflation, elevated asset prices, rising interest rates and geopolitical conditions” are shifting “under the surface.”

Original Article

You May Also Be Interested In

• US Treasury: 'Authorizing Wind Down Activities...the Offloading of Cargo Involving Certain Persons or Vessels Blocked on October 21, 2026'
• Citi reiterates buy rating on Arcus Biosciences after stock drops 20%
• Southern Missouri Bancorp (SMBC) Tops Q1 EPS by 7c