U.S. Markets open in 31 mins
  • S&P Futures

    3,315.50
    -67.50 (-2.00%)
     
  • Dow Futures

    26,729.00
    -636.00 (-2.32%)
     
  • Nasdaq Futures

    11,393.50
    -194.50 (-1.68%)
     
  • Russell 2000 Futures

    1,551.50
    -37.50 (-2.36%)
     
  • Crude Oil

    37.68
    -1.89 (-4.78%)
     
  • Gold

    1,878.50
    -33.40 (-1.75%)
     
  • Silver

    23.62
    -0.94 (-3.85%)
     
  • EUR/USD

    1.1729
    -0.0061 (-0.5161%)
     
  • 10-Yr Bond

    0.7510
    -0.0270 (-3.47%)
     
  • Vix

    37.50
    +5.04 (+15.53%)
     
  • GBP/USD

    1.2938
    -0.0103 (-0.7879%)
     
  • USD/JPY

    104.3840
    -0.1100 (-0.1053%)
     
  • BTC-USD

    13,249.71
    -460.30 (-3.36%)
     
  • CMC Crypto 200

    262.49
    +1.20 (+0.46%)
     
  • FTSE 100

    5,608.51
    -120.48 (-2.10%)
     
  • Nikkei 225

    23,418.51
    -75.79 (-0.32%)
     

JPMorgan's Dimon says more stimulus needed, warns businesses won't survive more coronavirus lockdowns

Jonathan Garber
·2 mins read

JPMorgan CEO Jamie Dimon says another year of lockdowns aimed at slowing the spread of COVID-19 would deal a knockout blow to businesses reeling from the pandemic.

“There are a lot of people who are under a lot of stress and strain who won't be able to survive another year of complete closedown,” Dimon said on JPMorgan’s third-quarter conference call on Tuesday.

Dimon thinks a continuation of some type of unemployment insurance and PPP will “skew the odds of having a better outcome" for the fragile economy.

He added that a return to the office that is “done properly” will go a long way to helping alleviate the problems being experienced by all of the businesses that support big office towers and buildings.

At the height of the pandemic, the Federal Reserve and Congress sprang into action to cushion the economy as lockdowns forced nonessential businesses to close their doors for months nationwide. As a result, more than 60 million Americans, at least temporarily, lost their jobs in what has been the sharpest economic slowdown of the post-World War II era.

BIG MONEY MANAGERS FLEE CASH DESPITE CORONAVIRUS, ELECTION WORRIES

To combat the crushing blow, the central bank slashed interest rates to near zero and pledged to buy unlimited assets while Congress deployed about $3 trillion through a series of programs and are in the process of negotiating more aid.

On the fiscal side, the $2.2 trillion Cares Act, which was the biggest stimulus package in history, increased unemployment benefits by $600 per week for three months and established the Paycheck Protection Program, providing grants and loans to small businesses, among other things.

JPMORGAN TRADING SURGE BOOSTS EARNINGS

But that money has run out and Democrats and Republicans are at a stalemate in negotiations, leaving millions of Americans and business owners in the lurch about what their future holds as more than 100,000 small businesses have closed and a looming winter has many restaurant owners in cold-weather states that have not returned to full indoor dining capacity fearing the worst.

Additionally, fears of a second wave of COVID-19 infections have stoked concerns that another round of lockdowns could be initiated. Former Vice President Joe Biden, who is ahead of President Trump by 10 points in the national polls, has said he would follow the science and re-lockdown the country to help slow the spread.

Trump, for his part, has ruled out more lockdowns and has urged lawmakers to pass another round of stimulus.

On Tuesday, Senate Majority Leader Mitch McConnell said that the first order of business when the full Senate returns is to debate another COVID-19 relief package.

CLICK HERE TO READ MORE ON FOX BUSINESS

Related Articles