‘If we have a couple of years of good growth, that could justify the markets where they are. Four percent economic growth this year is possible.’
Those were the thoughts of JPMorgan Chase & Co. CEO Jamie Dimon, who offered a forecast for U.S. economic growth that outstrips even some of the more bullish economists.
Speaking during an interview with Fox Business’s Maria Bartiromo on Tuesday, Dimon said the recently signed tax legislation, which cuts the corporate tax rate to 21% from 35%, is likely to support higher levels for the Dow Jones Industrial Average the S&P 500 index and the Nasdaq Composite Index which have already rung up all-time highs in first several sessions of 2018, after a record-setting rally for the equity benchmarks last year.
Dimon said he expects the “competitive tax rate” to encourage deal-making on Wall Street, pointing to Europe which he said is on pace to grow at a 3% rate. A reading of gross domestic product is slated for Jan. 26.
In the U.S., the economy grew at a 3.1% annual pace in the second quarter and a 3.2% annual rate in the third, according to the Commerce Department, exceeding the postrecession pace of near 2% A fresh estimate of gross domestic product is slated for Jan. 26.
“The economy is doing quite well” @jpmorgan ceo Jamie Dimon “if we have a couple of years of good growth, that could justify the markets where they are. 4% economic growth this year is possible” @MorningsMaria @FoxBusiness #Dow25K
— Maria Bartiromo (@MariaBartiromo) January 9, 2018
SOURCE: MARK DECAMBRE