While many investors may worry about the effects that the U.S.-China trade war, Brexit and Middle East tensions are having on the global economy, Jamie Dimon has this advice: Relax.
The chairman and chief executive of JPMorgan Chase & Co.
told “60 Minutes” on Sunday that today’s world is no more unpredictable than it has been in the past, and that in the post-World War II era, only one global crisis has truly affected the global economy in the short run — the 1973 oil embargo, which set off a global recession.
In a wide-ranging interview with CBS News’s Lesley Stahl, Dimon said he’s optimistic about the U.S. economy.
“The consumer, which is 70% of the U.S. economy, is quite strong,” he said. “Confidence is very high. Their balance sheets are in great shape. And you see that the strength of the American consumer is driving the American economy and the global economy. And while business slowed down, my current view is that, no, it just was a slowdown, not a petering out.”
In September, Dimon said he does not expect a resolution to the trade war before the 2020 election, but he also doesn’t think a recession is coming anytime soon.
In Sunday’s interview, Dimon acknowledged institutional mistakes were made by the banking industry during the lead-up to the 2008 financial crisis. “I think we let the American people down,” he said.
Dimon said he understands public anger over the lack of punishment for those who caused the meltdown, and agreed that income inequality is becoming a growing concern.
“I think it’s a huge problem and I think the wealthy have been getting wealthier too much, in many ways,” he said.
He drew the line at giving up his $31-million-a-year pay package though.
“The board sets mine. I have nothing to do with it,” he said.
“Well, you could return some of it,” Stahl countered.
“I could,” said Dimon. “Is that gonna solve any of those problems?”
Dimon said a cap on executive pay would be impractical, but he would not have cut taxes for the rich, as the Trump administration did, and suggested part of the solution was raising the federal minimum wage.
“The problems are real. It does not mean free enterprise is bad,” he said.
Dimon, who said in 2018 that he could beat President Donald Trump in an election because “I’m smarter than he is,” also said he has no intention of running for president.
“I thought about thinking about it,” he said. “I talked to one person, and I decided to think no more.”