JP Morgan boss Jamie Dimon slams 'Bidenomics' for 'causing inflation'

JP Morgan Chase CEO Jamie Dimon has questioned the success of 'Bidenomics' and blamed president Joe Biden's $5trillion economic stimulus for causing inflation.

The boss of the nation's largest bank gave his thoughts on Biden's plan to tax the wealthiest in order to invest in the middle class, which directly opposes Reagan era 'trickle-down' policies that gave economic breaks to the upper class.

'I’d be careful about that,' the 67-year-old told The Economist regarding regulations meant to protect the middle class such as export controls.

The powerful banking executive explained that he sees Bidenomics as an industrial policy, meaning it's designed to encourage or subsidize particular industries. 

He added that, while he's always rejected such policies, he now sees them favorably, but only when it comes to matters of national security and competitiveness, not when it comes to what he sees as government intervention in the free market.

JP Morgan Chase CEO Jamie Dimon has spoken against 'Bidenomics' - saying he would be 'careful' about the president's economic vision that focuses on the middle class

President Joe Biden's plan taxes the wealthiest to focus investments on the middle class, which directly opposes Reagan era 'trickle-down' policies 

'If it relates to supersonic missiles, I think we should do it. If it relates to holding down the Chinese people, I think we shouldn’t do it,' Dimon said.

'There shouldn’t be social policy around that, it shouldn’t be political it should be purely economic.'

While the president has touted Bidenomics as a success, Dimon said 'it's a tough question to answer.'

Dimon also slammed Biden's $5 trillion stimulus package which included the $1.9 trillion American Rescue Plan, which Biden has credited for the nation's economic recovery following the pandemic.

The relief measure provided direct payments of up to $1,400 to most Americans and money for COVID-19 vaccines and testing, aid to state and local governments, help for schools and the airline industry and subsidies for health insurance. 

Despite Dimon's concerns with inflation, the country's inflation has slowed to a 3 percent annual rate - its slowest pace in more than two years, according to the latest Consumer Price Index, released Wednesday by the Bureau of Labor Statistics.

The 3 percent annual inflation rate is a sharp decrease from the 9.1 percent peak seen last June, and down from May's 4 percent increase. It is the lowest level since March 2021 when when inflation was 2.6 percent.

When asked if he would ever run for office, Dimon replied he doesn't intend to, but may one day consider a cabinet position. 

Last month Biden introduced his vision of middle-class American prosperity.

'Bidenomics' is the new buzzword for the plan that taxes the wealthiest to invest in areas critical to national security, such as semiconductors; educating workers to expand the middle class; and encouraging economic competition to lower costs.

The name is deliberately designed to echo 'Reaganomics,' which Democrats say is a discredited trickle-down theory that failed to invest in important infrastructure. 

It comes as Republicans believe the president is vulnerable on pocket book issues after presiding over gas spikes and a year of rampant inflation.

The 3 percent annual inflation rate is a sharp decrease from the 9.1 percent peak seen last June

The price of used cars and airline tickets fell over the last year, while vehicle insurance and new vehicles rose in cost

A recent poll conducted for DailyMail.com by J.L. Partners showed voters believe Biden is weak on those issues.

Overall some 43 percent of Americans said they were a 'lot worse off' since Biden took office, with another nine percent classing themselves as a 'bit worse off.'

Airline fares and used cars were among the biggest fallers in price over the last 12 months - decreasing by 18.9 percent and 5.2 percent respectively. Vehicle insurance, meanwhile, rose by a huge 16.9 percent year-on-year.

It is the most hopeful news since the Federal Reserve began trying to tame rapid price increases 16 months ago - with the target rate of 2 percent inflation within reaching distance.

However officials have signaled that they are still likely to raise interest rates another quarter point to a 22-year-high at their July meeting later this month. In June, the Fed pressed pause on 10 consecutive rate rises - holding the benchmark rate steady between 5 and 5.25 percent as inflation began to ease.

It is the 12th month in a row that annual inflation, measured by the CPI, has slowed - and it is slightly below economist predictions for a 3.1 percent increase.

President Joe Biden hailed the inflation data as 'Bidenomics in action' and said it is 'new and encouraging evidence that inflation is falling while our economy remains strong,' according to a statement released by the White House.

The cost of gasoline fell by 26.5 percent since June 2022, according to the Bureau of Labor Statistics, providing some relief for motorists at the pump.

This is a marked change from this time last year, when there was a rapid run-up in energy prices following Russia’s invasion of Ukraine - which helped drive inflation to a four-decade high.