JPMorgan's Dimon says supply chain woes 'will not be an issue next year'

JPMorgan CEO Dimon says inflation is not temporary, disagrees with Fed

JPMorgan Chase CEO Jamie Dimon on stimulus payments, 10-year Treasury rates and the banking competition.

JPMorgan Chase CEO Jamie Dimon expressed optimism Monday that the U.S. economy will soon recover from supply chain issues that have plagued companies and consumers in recent months.

"I should never do this, but I’ll make a forecast," Dimon said during a virtual appearance at the Institute of International Finance’s annual conference. "This will not be an issue next year at all. This is the worst part of it. I think great market systems will adjust for it like companies have."

Supply chain issues are a source of mounting concern as global economies attempt to meet surging demand and recover from the COVID-19 pandemic. Executives from several companies, including Nike, have noted disruptions could weigh on their earnings in the coming months.

HOMEBUILDERS JOIN CHORUS OF SUPPLY CHAIN WARNINGS

FILE PHOTO: JPMorgan Chase CEO Jamie Dimon speaks at the North America’s Building Trades Unions (NABTU) 2019 legislative conference in Washington, U.S., April 9, 2019. REUTERS/Jeenah Moon/File Photo (Reuters)

Shortages of basic household items such as toilet paper, raw materials needed for construction and critical tech components such as semiconductors have contributed to a surge in prices for consumers. The issues prompted President Biden to form a task force in June to identify and eliminate bottlenecks in U.S. supply chains.

Dimon argued the issues are unlikely to stop the U.S. economy from rebounding from the COVID-19 pandemic and have not prevented consumers from spending money.

CLICK HERE TO READ MORE FROM FOX BUSINESS

The JPMorgan Chase CEO noted recent statistics showing consumers are spending 20% more at present than they were prior to the pandemic.

"Keep in mind, the consumer’s buying other stuff," Dimon said. "They can’t buy cars; they’re buying home improvement. They can’t travel internationally; they travel domestically. The spend level is very high."

Source: Read Full Article