Posted on 01/09/2018 8:56:50 AM PST by gubamyster
Those were the thoughts of JPMorgan Chase & Co. CEO Jamie Dimon, who offered a forecast for U.S. economic growth that outstrips even some of the more bullish economists.
Speaking during an interview with Fox Businesss Maria Bartiromo on Tuesday, Dimon said the recently signed tax legislation, which cuts the corporate tax rate to 21% from 35%, is likely to support higher levels for the Dow Jones Industrial Average DJIA, +0.45% the S&P 500 index SPX, +0.29% and the Nasdaq Composite Index COMP, +0.13% which have already rung up all-time highs in first several sessions of 2018, after a record-setting rally for the equity benchmarks last year.
Dimon said he expects the competitive tax rate to encourage deal-making on Wall Street, pointing to Europe which he said is on pace to grow at a 3% rate. A reading of gross domestic product is slated for Jan. 26.
In the U.S., the economy grew at a 3.1% annual pace in the second quarter and a 3.2% annual rate in the third, according to the Commerce Department, exceeding the postrecession pace of near 2% A fresh estimate of gross domestic product is slated for Jan. 26.
However, few prominent economists are expecting GDP growth to hit a stellar 4% pace this year.
In an interview with The Wall Street Journal, Glenn Hubbard, Columbia Business School dean, said corporate tax cuts arent likely to have the stimulative effect many are hoping. Its not going to raise us off to 4% GDP growth, he told the newspaper. But its not going to kill 10,000 people a year.
(Excerpt) Read more at marketwatch.com ...
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