Ukraine Crisis CBS News App Show Schedule Newsletters Full Episodes COVID Pandemic CBS Village The

COVID Pandemic CBS Village The Uplift Essentials Shopping

NEWS SHOWS LIVE LOCAL Login

JPMorgan Chase CEO Jamie Dimon says post-

pandemic economic boom "could extend well
into 2023"
BY I R I N A I VA N OVA
U P D AT E D O N : A P R I L 7, 2 0 2 1 / 1 2 : 1 9 P M / M O N E Y W AT C H

Manage Cookies

Watch CBS News

America's best-known banker thinks the U.S. economy is set to take o as the coronavirus abates.
JPMorgan Chase CEO Jamie Dimon predicts in his annual letter to shareholders that widespread
vaccinations, coupled with more government spending and business reopenings, could propel the
recovery for several years.

"[W]ith excess savings, new stimulus savings, huge de cit spending, more [quantitative easing by the
Federal Reserve], a new potential infrastructure bill, a successful vaccine and euphoria around the
end of the pandemic, the U.S. economy will likely boom. This boom could easily run into 2023
because all the spending could extend well into 2023," Dimon wrote in the letter released
Wednesday.

Consumers are likely to lead the American resurgence, according to Dimon. An infusion of
government cash in the form of unemployment bene ts and economic relief payments helped boost
the personal savings rate to levels not seen since the 1970s, according to U.S. Commerce Department
data. Even before the most recent round of stimulus checks went out, Americans had about $2
trillion saved up, Dimon estimated. 

Once vaccines are widespread and more businesses reopen, a large chunk of those savings are likely
to be spent on consumer goods and experiences outside the home, which should lead to yet more
growth, experts agree. Economists at the Federal Reserve expect U.S. economic growth to
reach 6.5% this year, which would be the fastest rate of expansion since 1984.

That burst of economic activity could last several years if recent federal spending proposals become
law, such as President Joe Biden's bid to upgrade the nation's airports, railways and roads, Dimon
noted.

Tax the rich

The CEO of the country's largest bank also expressed support for increased taxes on the wealthy for
priorities such as infrastructure and education spending. 

"If the wealthy paid more in taxes and the money was put to good use, they would be the main
bene ciaries of a stronger economy," said Dimon, whose net worth is estimated at $1.8 billion.

Biden defends infrastructure bill

13:58

Dimon called for a range of policies to make it easier for people to get and keep work, including
expanding child care options, opening jobs to formerly incarcerated people and eliminating college-
degree requirements for jobs that don't need the higher education credentials companies demand in
their hiring process.

He also called for an increase in the federal minimum wage, noting that a family of four would need
to make about $68,000 a year on average to reach a "living wage" level. 

"With two adults working full time, each would need to earn $16.50 an hour to reach that level,"
Dimon wrote.

Coronavirus Crisis More

China extends Shanghai Senate strikes $10 billion deal Medicare enrollees can now More states return millions, as
lockdown as COVID spreads on COVID-19 relief get free COVID-19 tests at rent assistance battle heats
despite draconian policy drug stores up

First published on April 7, 2021 / 11:41 AM

© 2021 CBS Interactive Inc. All Rights Reserved.

Copyright ©2022 CBS Interactive Inc. All rights reserved.

Privacy Policy Do Not Sell My Personal Information Cookies Policy Terms of Use About Advertise Closed Captioning CBS News Live on Paramount+ CBS News Store Site Map
Contact Us Help

Quotes delayed at least 15 minutes.

Market data provided by ICE Data Services. ICE Limitations. Powered and implemented by FactSet. News provided by The Associated Press. Legal Statement.