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JPMorgan boss sees US tax cuts lifting wages, creating jobs and boosting economy

Jamie Dimon thinks the US economy could reach a 4% annual growth rate this year
Jamie Dimon
Jamie Dimon said Brexit could mean JPMorgan cuts its 16,000 UK workforce

JPMorgan Chase & Co (NYSE:JPM) chairman and chief executive Jamie Dimon reckons the US tax reforms will boost the economy, create more jobs and lift wages.

"I think it's possible you're going to hit 4% (annual economic growth) some time this year," Dimon said in an interview with CNBC from the World Economic Forum in Davos.

"I promise you, we are going to be sitting here in a year and you all will be worrying about inflation and wages going up too high."

President Donald Trump has vowed to create 25 million new American jobs in the next decade and return to 4% economic growth.

Dimon backs corporate tax cuts

Dimon thinks this is achievable following the tax overhaul, which includes cutting the corporate tax rate to 21% from 35%.

"I can't believe that people think having an uncompetitive tax system is a good thing," he said.

"The real benefit comes over time. Competitive taxes [will lead to] more capital, more jobs, more companies investing here."

On the back of the new legislation, Dimon said the bank will spend US$20bn over the five years to raise hourly pay for employees. JP Morgan will also open branches in new US locations.

"We're adding sales people, opening more branches," he said. "We think it is good for J.P. Morgan, and we think it's going to be very good for the economy."

JPMorgan could move more than 4,000 jobs after Brexit

In the UK, however, Dimon said the bank will cut its 16,000 UK workforce by more than a quarter if Brexit talks result in a divergence of regulations and trade agreements with the European Union.

Dimon told the BBC he could move more than 4,000 jobs out of Britain.

"If we can't find reciprocal recognition of rules - and there are a lot of people who are mad with the Brits for leaving and want their pound of flesh - then it could be bad,” he said. 

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