Nov 9, 2021 - Economy

A dose of optimism from JPMorgan

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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.

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