Jamie Dimon says worst of pandemic may soon be over

Dimon mentioned he isn’t apprehensive 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 should always all thank our fortunate stars,” Dimon instructed reporters about his expectation that the US could quickly be turning a nook on the subject of Covid-19 circumstances.

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

“There’s an excellent likelihood {that a} 12 months from now that we cannot be speaking about provide chains in any respect,” Dimon mentioned.

The difficulty is a significant 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.
Dimon additionally shrugged off concerns concerning the rising number of people quitting their jobs, noting that wages are going up for staff — 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 12 months.
Shares of huge banking rivals Citigroup (C), Financial institution of America (BAC), Wells Fargo (WFC), Goldman Sachs and Morgan Stanley have all surged this 12 months 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 greater long-term rates of interest, which might enhance lending earnings for banks.

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

However Barnum didn’t appear apprehensive concerning the chance that greater charges will decelerate the purple scorching housing market. He mentioned through the press name that whereas rising charges might result in a slowdown in mortgage refinancing, this 12 months remains to be on the right track to be the largest 12 months ever for brand new house loans.

“The influence 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 house costs are making it tougher for a lot of to afford a home.

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