Jamie Dimon isn't sold on "Bidenomics."
"I'd be careful about that," said Dimon, CEO of JPMorgan Chase, in reference to president Joe Biden's economic theory that rejects "trickle-down" policies in favor of focusing on the middle class.
The president claims that middle-class focus is the driving force behind the US economy's success, but Dimon's not convinced. "It's a tough question to answer," said the head of the nation's largest bank, when asked if Bidenomics is as successful as the president makes it out to be.
In an interview with The Economist released Tuesday, Dimon classified Bidenomics largely as industrial policy -- a strategy that specifically encourages or subsidizes particular industries, such as manufacturing. He said he's in favor of some industrial policy lately, for the first time in his life, but only as it relates to national security and competitiveness.
"There shouldn't be social policy around that," he said adding that "it shouldn't be political it should be purely economic."
And the $5 trillion of stimulus the government authorized, including Biden's $1.9 trillion American Rescue Plan, to counter the economic effects of Covid, was excessive and is "causing inflation," Dimon said.
What would Dimonomics look like?
Although Dimon said he's worried about a possible second Donald Trump presidential term, he said he doesn't intend to run for office. A cabinet position, he said, could be in the cards "one day."
But if Dimon had the opportunity to shape the country's economic policy he said he'd institute free-enterprise "growth policies."
The county hasn't been expanding as much as it should over the past two decades in part because of bad policies with regard to immigration, taxation, healthcare and housing, Dimon said.
At least for now, though, the "big storm clouds" Dimon warned about last year only "partially hit," he said. But he isn't ruling out a recession in the next six months.
