JPMorgan Chase CEO Jamie Dimon said new governments “always have problems”[ads1]; and UK Prime Minister Liz Truss should be “given the benefit of the doubt” after a turbulent first month in office.
“It will take time to implement the guidelines and drive growth and what’s important… [but] There’s a lot of things the UK has going for it and the right strategies to make it grow faster … then it can achieve some of the other goals it wants to achieve as well, Dimon told CNBC’s Julianna Tatelbaum on Monday, speaking at JPM Techstars conference in London.
“I would like to see the new prime minister, the new chancellor, be successful,” he said.
Dimon’s comments come after a rough few weeks for the Truss administration. Finance Minister Kwasi Kwarteng announced a series of tax measures in a “mini-budget” on 23 September, including unfunded cuts to income tax and the cancellation of a planned increase in corporate tax.
Sterling plunged and yields on UK government bonds, or ‘gilts’, were sent through the roof and have yet to return to pre-announcement levels.
The government then chose to reverse the decision to scrap the highest income tax bracket – a rate of 45% for those earning more than £150,000 – just 10 days later.
“Every government should focus on growth”
Growth should be a goal for every nation, according to JPMorgan’s Dimon.
“I think every government should focus on growth — I’d love to hear that from their mouths every time a president or prime minister speaks,” Dimon said.
“Growth comes from the right tax policy, from the right investment policy, consistency in the law … being attractive to foreign investment, being attractive to companies and having a strategy around industries,” he said.