(dpa-AFX) -JP Morgan Chase & Co chief executive Jamie Dimon expects the US economy to get stronger under the Biden administration.
In the annual letter to shareholders, Dimon argues that excess saving, deficit spending, and most crucially, the vaccination leading to the heightened joy of overcoming the pandemic can boost the economy as well as the morale of the country till 2023.
Having said that, Dimon also sees an increase in inflation rates, which will force the Federal Reserve to increase tax rates.
Dimon said, “Rapidly raising rates to offset an overheating economy is a typical cause of a recession”. He also stresses that a “Goldilock scenario” of gently increasing recession, healthy growth and a balanced increase in interest rates will only help the country to move forward.
Dimon’s letter also undermines the role of banks in the contemporary economy and asks the administration to emphasize regulation on the Fintech companies as well as large-scale retail chains.
The long-term CEO of JP Morgan also blames the expensive regulatory system for stunting the growth of small businesses. Dimon added, “We have a litigation and regulatory system that is costly, crippling small businesses with red tape and bureaucracy”.
“Very often local regulations are simply a form of low-level corruption in which bureaucrats are paid to slowly . move . paper . around,” quoted Dimon pointing out the sluggish nature of the paperwork that contributes in stifling the small business.
Talking about efficiency in business and implementation of newer technology that cuts cost and causes less harm to nature, Dimon cited the case of the Federal Aviation Administration.
According to him, the agency has failed to use the new ATC technology that reduces flight time by 10 minutes and reduces greenhouse gas emissions by 12 per cent.