Investment Bank CEO: Shutdown Could Reduce Economic Growth To 0% This Quarter

J.P. Morgan Chase CEO Jamie Dimon.Steve Jurvetson/CC BY 2.0/Flickr

J.P. Morgan Chase CEO Jamie Dimon has warned the government shutdown could preclude economic growth if it continues.

The CEO of J.P. Morgan Chase, Jamie Dimon, warns that the shutdown could stop growth in the U.S. economy if the shutdown lasts the whole quarter, according to CNBC.

“Someone estimated that if it goes on for the whole quarter, it can reduce growth to zero,” Dimon told reporters on a media call to discuss fourth-quarter results. “We just have to deal with that. It’s more of a political issue than anything else.”

Dimon says when the downturn does eventually happen, the bank will be prepared.

There is still growth, Dimon says. “Consumers are in good shape, they’re spending money, they’re saving money, household formation is going up, wages are going up. Eventually there will be offsets that may push the economy into recession, we don’t know when that’s going to be.”

Dimon urges U.S. political leaders “to strike a collaborative, constructive tone, which would reinforce an already-strong consumer and business sentiment.”