Jamie Dimon says worst of pandemic could quickly be over

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Dimon mentioned he isn’t frightened about the potential for inflation heating up within the subsequent few months throughout a name with reporters about JPMorgan Chase’s third quarter earnings Wednesday.

He bluntly mentioned “that is life” and added that the truth that we’re even speaking about inflation is an effective factor as a result of it is a signal that the worst of the Covid-19 pandemic, regardless of Delta variant fears, could quickly be over.

“We must always all thank our fortunate stars,” Dimon advised reporters about his expectation that the US could quickly be turning a nook almost about Covid-19 instances.

Dimon even dismissed worries about all of the headlines concerning provide chain disruptions as a result of pandemic.

“There’s an excellent likelihood {that a} yr from now that we cannot be speaking about provide chains in any respect,” Dimon mentioned.

The problem is a serious headache for retailers and shippers proper now although. President Biden is even meeting with executives from Walmart (WMT), Goal (TGT), FedEx (FDX) and UPS (UPS) Wednesday to speak about it.
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Dimon additionally shrugged off concerns in regards to the rising number of people quitting their jobs, noting that wages are going up for employees — a constructive for the economic system.
Buyers appear much less optimistic although. JPMorgan Chase (JPM) shares 2% Wednesday morning…though they continue to be up virtually 30% to this point this yr.
Shares of massive banking rivals Citigroup (C), Financial institution of America (BAC), Wells Fargo (WFC), Goldman Sachs and Morgan Stanley have all surged this yr too. These banks will every report their third quarter outcomes later this week.

Banks have benefited from hopes that the Federal Reserve will quickly begin to in the reduction of on, or taper, its bond purchases. That ought to result in increased long-term rates of interest, which might enhance lending income for banks.

JPMorgan Chase Chief Monetary Officer Jeremy Barnum advised reporters that mortgage development was beginning to pickup and that credit score high quality stays sturdy. He mentioned these tendencies ought to proceed as “we strategy what we hope is the tail finish of the pandemic.”

However Barnum didn’t appear frightened in regards to the chance that increased charges will decelerate the purple sizzling housing market. He mentioned through the press name that whereas rising charges might result in a slowdown in mortgage refinancing, this yr remains to be on track to be the largest yr ever for brand new dwelling loans.

“The affect of the taper and better charges should not be a supply of main concern for the housing market,” Barnum mentioned. However he famous that hovering dwelling costs are making it more durable for a lot of to afford a home.

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