Nov 9, 2021 - Economy

A dose of optimism from JPMorgan

Hope King

gif of a hand spinning a frowning face into a smiley face. — Illustration: Aïda Amer/Axios

With 2021 soon in the rearview, the economic tumult of 2020 is looking more and more like a faded “scar,” J.P. Morgan Asset Management's team told reporters on Monday.

Why it matters: “Bold” and coordinated fiscal and monetary policies not only helped soften the pandemic’s blow — they also set up conditions for more corporate and economic growth, they said.

The big picture: The passage of the $1.2 trillion infrastructure bill on Friday is a further example of the U.S. government's willingness to spend in order to drive economic activity, said David Kelly, the firm's chief global strategist.

That, along with strong corporate profits and low-interest rates, points to strong capital spending in the U.S. over the next 10 to 15 years, he said.

Yes, but: Global growth will likely moderate compared to the last decade, as expansion in China — the world's second-largest economy — slows down.

The bottom line: “[T]he growth outlook is pretty good, all things considered — and certainly, it does not look like the global economy has been in any way permanently scarred by the pandemic,” Kelly said.

Go deeper ... "Axios on HBO": Jamie Dimon on China, his salary and racial equity

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A dose of optimism from JPMorgan

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