Jamie Dimon is bullish on the U.S. economic system – not less than for the following few years.

In his annual shareholder letter, the long-time JPMorgan Chase chairman and CEO mentioned he sees sturdy development for the world’s largest economic system, because of the U.S. authorities’s response to the coronavirus pandemic that has left many customers flush with financial savings.

“I’ve little doubt that with extra financial savings, new stimulus financial savings, big deficit spending, extra QE, a brand new potential infrastructure invoice, a profitable vaccine and euphoria across the finish of the pandemic, the U.S. economic system will possible growth,” Dimon mentioned. “This growth may simply run into 2023 as a result of all of the spending may lengthen nicely into 2023.”

Dimon, who managed JPMorgan by means of the 2008 monetary disaster, serving to to create the most important U.S. financial institution by belongings, identified that the magnitude of presidency spending through the pandemic far exceeds the response to that earlier disaster. He mentioned the longer-term affect of the reopening growth will not be identified for years as a result of it’s going to take time to determine the standard of presidency spending, together with President Joe Biden’s proposed $2 trillion infrastructure invoice.

“Spent correctly, it’s going to create extra financial alternative for everybody,” he mentioned.

Dimon weighed in on a variety of matters acquainted to watchers of the nation’s most distinguished banker: He promoted JPMorgan’s efforts to create financial alternatives for Individuals who’ve been left behind, highlighted threats to U.S. banks’ dominance from fintech and Huge Tech gamers, and opined on public coverage and the function of firms to assist result in change.

Whereas Dimon known as inventory market valuations “fairly excessive,” he mentioned a multiyear growth could justify present ranges as a result of markets are pricing in financial development and extra financial savings that make their manner into equities. He mentioned there was “some froth and hypothesis” in elements of the market however did not say the place precisely.

“Conversely, on this growth state of affairs it is exhausting to justify the worth of U.S. debt (most individuals take into account the 10-year bond as the important thing reference level for U.S. debt),” Dimon mentioned. “That is due to two elements: first, the large provide of debt that must be absorbed; and second, the not-unreasonable chance that a rise in inflation won’t be simply short-term.”

Whereas he’s bullish for the economic system’s rapid future, there are severe challenges for the U.S., Dimon mentioned. The nation has been examined earlier than — although conflicts beginning with the Civil Warfare, the Nice Despair and the societal upheaval of the Nineteen Sixties and Seventies, he mentioned.

“In every case, America’s may and resiliency strengthened our place on the planet, significantly in relation to our main worldwide opponents,” Dimon mentioned. “This time could also be totally different.”

The previous 12 months highlighted challenges for U.S. establishments, elected officers and households, as our nation’s rivals see a “nation torn and crippled by politics, in addition to racial and earnings inequality — and a rustic unable to coordinate authorities insurance policies (fiscal, financial, industrial, regulatory) in any coherent technique to accomplish nationwide objectives.”

The nation in the end must “transfer past our variations and self-interest and act for the better good,” Dimon mentioned. “The excellent news is that that is fixable.”