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Dimon: Solve fiscal cliff, U.S. economy will soar

December 12, 2012: 10:19 AM ET
jamie dimon, jpmorgan, fiscal cliff, economy

If Washington can resolve the fiscal cliff, JPMorgan CEO Jamie Dimon predicts the United States will have a "booming" economy, with growth around 4% and monthly job gains north of 200,000.

JPMorgan (JPM) CEO Jamie Dimon says the U.S. economy is poised to boom if Washington lawmakers can strike a deal to avoid the fiscal cliff.

But of course, that's a really big "if."

"I don't know the odds," said Dimon, speaking at a conference Wednesday hosted by The New York Times' Dealbook. "We could go off the fiscal cliff, and it may not be as big of a deal as people think, but it might be, so why would you take that chance?"

Dimon thinks lawmakers will probably take their wrangling down to the final minutes but will ultimately come to a resolution.

Related: Perils of going over the cliff temporarily

And if they do, the United States could have "a booming economy in a couple months," said Dimon.

That would mean economic growth around 4%, rather than 2%, and job gains north of 200,000 a month, which would push the unemployment rate down.

"The table is set very good right now," said Dimon. "Housing has turned a corner. Let's just keep it going, and bring back confidence and stability."

Dimon, who calls himself "barely a Democrat," was invited to meetings at the White House to discuss the fiscal cliff but said he did not attend since he was traveling in Brazil and Chile at the time.

But he said he appreciates that the White House reached out, adding that "collaboration between business, government and civil society leads to a better outcome."

"Business just wants a rational deal to get done," said Dimon, noting that they are willing to pay more in taxes as long as the higher rates are linked with entitlement reform.

"We are one decision away from restoring our fiscal and moral authority from around the world," said Dimon. "Let's just do it."

  • Stock market predicts Obama win. Or is it a loss?

    The opinions expressed in this commentary are solely those of Paul R. La Monica. Other than Time Warner, the parent of CNNMoney, and Abbott Laboratories, La Monica does not own positions in any individual stocks.

    Good news for President Obama. Stocks have surged during his term in the White House. Historically, that should mean he will win re-election. Bad news for President Obama. The market has tumbled in the past month. And MORE

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