US economy is like ship that could hit ‘slowdown or recession’

Adam Galica | CNBC

Jamie Dimon, CEO of JP Morgan Chase, speaking at the 2019 WEF in Davos, Switzerland on Jan. 23rd, 2019.

If politicians fix things that are broken, GDP could grow consistently at a 3 percent rate, he said.

“The thing we have to do is facts, analysis, details and not just slogans — policies well done and explained to the American public as opposed to slogans and policies that’s implemented and doesn’t work,” Dimon added.

He spoke at the annual meeting of global political and business leaders that has taken on a decidedly negative tone this year after 2018’s strongly optimistic tone. Speakers at Davos have expressed concern about various geopolitical issues such as the U.S.-China trade impasse, the slowing in the Chinese economy and decreasing business and consumer confidence.

Billionaire investor Ray Dalio, for instance, said he fears a recession in 2020, echoing the general level of concern.

Dimon was somewhat more optimistic, though he admonished warring factions in the U.S. to resolve their differences.

“Democrats and Republicans should sit down and finish this [shutdown] issue immediately and compromise to do it,” he said.

Among the issues he said need to be addressed are regulatory and immigration reform as well as infrastructure and education, as well as “lots of little things.”

“Brexit, if that goes south, that’s not good, if trade goes south, that’s not good, if the shutdown goes on longer, that’s not good. They have real direct effects on the economy and indirect on confidence,” he said. “If I was a policymaker, I’d want to get those things resolved.”

Dimon also told CNBC he thinks the U.S. and China will reach an interim agreement before the March 2 deadline to end their tariff cease-fire.

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