A huge rise in US government spending will boost the world’s largest economy over at least the next two years, said the chief executive of JPMorgan Chase.

Jamie Dimon offered the upbeat outlook in his annual letter to shareholders, in which he asserted that high savings rates, stimulus programmes, a potential infrastructure package and “euphoria around the end of the pandemic” were likely to jump-start the US economy.

“It is possible that we will have a Goldilocks moment — fast growth, inflation that moves up gently (but not too much) and interest rates that rise (but not too much),” Wall Street’s leading banker said, adding that sustained spending could fuel a years-long hot streak.

Both consumers and companies appeared to be in great financial health as the country starts to emerge from the health crisis, said Dimon, who heads the largest US bank by assets.

Even before Joe Biden’s $1.9tn stimulus…

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