2022 economy to experience ‘best growth’ in decades

JP Morgan CEO Jamie Dimon said the United States would have the “best growth” in decades in 2022, CNBC reported on Monday (January 10th).

He said that would overtake at any time “maybe some time after the Great Depression,” adding that next year would be good as well. Dimon said his views came from the strong track record of the U.S. consumer, who he said “is spending 25% more today than before COVID.”

“Their debt service ratio is better than it has been since we’ve been keeping records for 50 years,” he said, according to CNBC.

While Dimon has expressed expectations for higher rates in the past, he noted that while the economy looks strong now, investors could have a tough year ahead.

“The market is different,” Dimon said. “We kind of expect the market to experience a lot of volatility this year as rates go up and people re-project. If we’re lucky the Fed can slow things down and we’ll have what they call a “soft landing.”

Bank stocks have risen this year so far – the KBW banking index rose 10% last week, giving the best result on record. The CNBC report notes that banks often do better in rising rate environments, with lines of credit rising as rates rise.

JP Morgan recently released better-than-expected third quarter results from Wall Street, but growth in credit and debit card spending has been strong.

See also: JPMorgan Earnings Shows Debit & Credit Card Sales Volume Increased 26%

Management noted that the results were supported by the recovery of the economy and consumer confidence. Dimon said the consumer is “in great shape” and “capitalism works”.

The company then freed up $ 2.1 billion in loan reserves, which had the effect of positively affecting the bottom line.

The company said revenue was $ 30.5 billion, an improvement over what Wall Street expected. Additional documents indicate that credit and debit card volume grew 26% year-over-year, reaching just under $ 350 billion.

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