At the moment there is great uncertainty and investors hate uncertainty.
JPMorgan Chase CEO Jamie Dimon says it is "not unreasonable" for the US to seek fairer trade conditions with China, Praises the Trump government for its reform of tax laws and warns that markets may underestimate the risk of a faster rate hike by the Federal Reserve. Emagazine.credit-suisse.com/app/art … = 157 & lang = DE Dimon, the most influential CEO in the banking sector and one of the biggest Englisch: emagazine.credit-suisse.com/app/art … = 157 & lang = en Markets, tensions in trade and government policy.
As Dimon said in the recent trade war between China and the US, the US "entered the US" tim "However, he stressed that" the right solution to serious trade issues is good for the US and the rest of the world , "
President Trump's complaints about China, according to Dimon, are" legitimate. "" I note that China is now the second largest economy in the world, accounting for 20% of [Fortune 500 companies, but is still considered "Developing country" understands that should not be subject to the same trade rules as The US and other "developed" countries
Although Dimon says it is "not unreasonable" for the US to push for more trade equality with China and believes that both countries have their own Want to solve problems, he says there "is always a chance that misjudgements by the various actors could lead to negative results, which obviously leads to a higher risk and greater uncertainty until the solution is found."
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Other important topics for the respected banker include:
A risk to the financial markets is that the economy is gaining speed to increase inflation and wages more than expected, as this may cause the country's central bank to raise interest rates faster and more aggressively than the market currently believes ,
"We need to look at the possibility of the Federal Council raising interest rates at some point in time. The Reserve and other central banks may need to act more drastically than they currently expect – to respond to markets and not steer markets," Dimon wrote , "While interest rates were lower in the past and longer than expected, they could go higher and faster than people expect."
A faster rate hike scenario may surprise investors, he warns, causing markets to become more "volatile".
Trump Economic Policies
Dimon says the new tax cut law, which lowered taxes on businesses and individuals, and Trump's move to cut back regulations that hampered corporate growth were necessary to unlock the potential of the economy
"Our current tax legislation," he wrote, "has been increasingly anti-competitive, overly complex and burdened with special interests that have produced winners and losers The good news is that the recent changes in the US tax system have many of the key ingredients to economic expansion
Dimon added, "I'm glad we did the right thing – not the easy thing."
The bank chief also said too often that people are "more" having regulation confuse "good" regulation, and what is really needed is "intelligent" regulation. He says that excessive regulation causes too much bureaucracy and too much time and effort for companies to comply with the rules. He cited an example of how it takes ten years to get permission to build a bridge, as the kind of regulation that slows down the economy.
"The current government is taking steps to reduce unnecessary regulation by applying cost-benefit analysis to the convention rules properly," said Dimon. "It also actively seeks to put regulators in the right roles and apply the right principles to make the appropriate changes."
Dimon, who recently teamed up with Amazon CEO Jeff Bezos and Berkshire Hathaway Chairman Warren Buffett is to set up a healthcare company to improve health care and reduce costs for its employees, assuming details include trying to reach the joint venture.
He pointed out that while the US has the best healthcare in the world, "we also have some of the worst – in terms of outcomes and costs."
He called for the formation of a bipartisan group of experts working on "improving patient outcomes and satisfaction".
JP Morgan's joint venture, Amazon and Berkshire Hathaway, said, "will leverage top management, big data, virtual technology, better customer retention, and improved customer choice," he said, adding: "High Deductibles have barely worked. "
You will tackle problems such as: Waste of money due to administrative costs and fraud, chronic diseases caused by obesity and smoking, expensive drugs and end-of-life care costs "Often undesirable."
Dimon says efforts are now underway and progress reports will be forthcoming in the coming years.
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