JPMorgan CEO Jamie Dimon on Wednesday, May 15, called on the leadership of the United States to reduce the fiscal deficit as soon as possible, noting that over time the relevant problem will become more difficult in terms of opportunities and prospects for its successful solution.
During a conversation with media representatives, the head of one of the largest financial institutions, part of the US banking sector, said that Washington had spent a lot of money. He also noted that during the coronavirus pandemic and after its completion, the budget deficit is now 6%. According to him, the corresponding indicator is high but obviously stimulates growth.
Jamie Dimon said that any country can borrow money and as a result of these actions activate the positive dynamic of the economy. In this case, economic growth is implied. At the same time, Mr. Dimon noted that as a result of such decisions, the final result of efforts is not always positive. According to him, the United States should clearly realize that more attention should be paid to fiscal deficit problems. In the relevant context, he noted that the mentioned efforts are important for the whole world.
Also, during a conversation with media representatives, Jamie Dimon answered the question of whether the United States could suffer from the consequences of fiscal deficits in the next couple of years if the relevant problem is not resolved. According to the JPMorgan CEO, in this case, the potentially possible implementation of a negative scenario will not be a serious comeuppance. Moreover, he said that in the next couple of years, Washington will not face the sensitive consequences of fiscal deficits, noting that this is the reason why the US has a higher inflation rate.
Jamie Dimon says that a 6% fiscal deficit and 100% debt to gross domestic product are circumstances in which a favorable economic situation may persist for some time, but such problems in the form of the mentioned indicators still need to be solved as quickly as possible.
JPMorgan’s CEO expressed hope that the United States government would really focus on reducing the fiscal deficit while still enjoying a period of robust economic growth. According to him, the current state of affairs at some point will lead to serious problems, which is why there is no reason to expect the situation to worsen. He also noted that procrastination reduces the ways to solve the specified problems, leaving more and more uncomfortable strategies and cutting the number of more convenient concepts of action.
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