Jamie Dimon, the CEO of JPMorgan Chase, publicly backed Elon Musk’s management of the newly created Division of Authorities Effectivity (D.O.G.E) at the moment.
Talking to CNBC on January 22, Jamie known as Elon “our Einstein” and mentioned the billionaire entrepreneur is the fitting particular person to deal with inefficiency within the federal authorities. Jamie added that he and JPMorgan are able to assist Elon’s efforts in any approach they’ll.
Jamie’s feedback come after President Donald Trump signed an government order creating the D.O.G.E division. Based on Elon, the initiative will modernize outdated federal IT techniques and overhaul the best way Washington operates.
Jamie described the federal government as bloated and in want of accountability, saying, “No one thinks sending one other trillion {dollars} to Washington is the reply. We want outcomes, and we want them quick.”
Authorized troubles, nonetheless, are already casting a shadow over the division. Lawsuits have been filed alleging that the D.O.G.E division violates federal advisory committee legal guidelines. However Elon has mentioned he doesn’t care one bit.
Jamie defends tariffs amid world commerce tensions
Whereas discussing Elon and D.O.G.E, Jamie additionally addressed President Trump’s tariff plans. He’s getting ready 10% tariffs on China and 25% on Mexico and Canada.
Jamie, talking from the World Financial Discussion board in Davos, Switzerland, defended the tariffs as a software to guard American pursuits. “If it’s a bit of inflationary however it’s good for nationwide safety, so be it. Recover from it,” Jamie mentioned.
In the meantime, Goldman Sachs CEO David Solomon described the tariffs as a part of a broader technique to rebalance commerce agreements, saying, “Used thoughtfully, this might enhance U.S. development over time.” The tariffs are set to take impact on February 1, in response to President Trump.
Jamie additionally addressed the U.S. inventory market, which has seen back-to-back annual good points of greater than 20% in 2023 and 2024. The S&P 500’s efficiency is the primary time in over 25 years that such consecutive good points have been achieved.
“Asset costs are within the prime 10% or 15% of historic valuations,” he mentioned. He identified that components of the bond market, together with sovereign debt, are additionally at file highs. These inflated costs, Jamie warned, might result in surprises if financial outcomes fall wanting expectations.
World dangers are one other concern for him. He cited the continued conflict in Ukraine, tensions within the Center East, and the rising menace from China as components that might form the worldwide economic system for the subsequent century. “It’s all interconnected, and it’s bought me frightened,” Jamie mentioned.
