JPMorgan Chase & Co. CEO Jamie Dimon expects robust economic growth “may very well continue” because he doesn’t see any “great potholes” stopping it.
Dimon told CNBC that he can't tell whether the China trade dispute will be a drag on the U.S. economy.
"I worry about it. But I just don't know," Dimon said.
"In America, the economy is quite strong. It's growing at 3 percent. And it has been now for a couple of quarters," he said. "There are no great potholes. So that may very well continue," he predicted.
"The household is in good shape; people going back to work. FICO [credit] scores are fine. Companies are flush. Tax reform is still a benefit. We don't have the extreme leverage we had in . All the lending has been pretty good," he said.
The U.S. announced last month that economic growth was a bit stronger than initially thought in the second quarter, notching its best performance in nearly four years and putting the economy on track to hit the Trump administration’s goal of 3 percent annual growth, Reuters reported.
Gross domestic product increased at a 4.2 percent annualized rate, the Commerce Department said in late August in its second estimate of GDP growth for the April-June quarter. That was slightly up from the 4.1 percent pace of expansion reported in July and was the fastest rate since the third quarter of 2014.
The economy grew at a 2.2 percent pace in the January-March period. The slight upward revision to growth last quarter reflected more business spending on software than previously estimated and less imported petroleum.
Stronger software investment and a smaller import bill offset a downward revision to consumer spending. President Donald Trump, whose administration has vowed to boost annual economic growth to 3 percent on a sustainable basis, cheered the revised second-quarter data. “Our country is doing great!” Trump tweeted.
The economy expanded 3.2 percent in the first half of 2018, up from the 3.1 percent estimated last month. Compared to the second quarter of 2017, output increased 2.9 percent instead of the previously reported 2.8 percent. Economists, however, cautioned that the second-quarter growth pace was unsustainable as it was largely driven by one-off factors.
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