US Headed for Best Economic Growth in Decades
Jamie Dimon Stated that the U.S. is Headed for the First-Rate Financial Increase in Decades.
Longtime CEO and Chairman of JPMorgan Chase’s confidence stems from the robust balance sheet of the American consumer.
How’s the US consumer balance sheet this year?
JPMorgan is the largest U.S. financial institution through belongings and has relationships with 1/2 of the country’s households.
“We’re going to have the first-rate increase we’ve ever had this 12 months, I assume due to the fact perhaps someday after the Great Depression,” Dimon advised CNBC’s Bertha Coombs throughout the fortieth Annual J.P. Morgan Healthcare Conference. “Next 12 months may be quite excellent too.”
“The customer stability sheet has in no way been in higher shape; they’re spending 25% greater these days than pre-COVID,” Dimon stated. “Their debt-carrier ratio is higher than it’s been due to the fact we’ve been preserving facts for fifty years,” Dimon stated increase will come whilst the Fed increases quotes probably greater than traders expect. Goldman Sachs economists anticipated 4 fee hikes this 12 months and Dimon stated he could be amazed if the important financial institution didn’t pass further.
Projections in 12 months
Indeed, financial institution shares have surged to date these 12 months as quotes climbed. The KBW Bank Index jumped 10% final week, the first-rate begin to 12 months on file for the 24-corporation index.
However, Dimon stated that whilst the underlying financial system appears strong, inventory marketplace traders may also bear a tumultuous 12 months because the Fed is going to work.
“The marketplace is different,” Dimon stated. “We’re a sort of anticipating that the marketplace can have a big volatility this 12 months as rates pass up and people sort of redo projections.”
“If we’re lucky, the Fed can slow things down and we’ll have what they name a `soft landing’,” Dimon added.
US Index-DXY Technical Analysis
US-Index rejected a resistance trendline level. DXY is still in a bearish bias and could continue going down break $95.655 area to continue down to $95.098 level.
WHAT ZFX THINKS…
Fundamentally in a long-term bias, USD will get stronger this year. It is possible in the long-term timeframe (monthly, for example), DXY could go up to the $100 level again. Nearest support for monthly timeframe is at $94.00 area
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