He said that rancor is not helping the economy to grow and that good policies will ultimately create jobs.
"If we had done the grand bargain that showed that Americans can make decisions," Dimon said, "I think we could have a booming environment. If we have a grand bargain America could take off."
With Europe still struggling with its issues for the next few years, it's important that America takes the lead, he said.
And if the U.S. economy grows, Dimon said that investors' recent move into equities looks sustainable. "You can still buy American companies at pretty good prices," he said, adding "I'm comfortable owning stocks right now."
(Read More: JPMorgan CEO Hits Back at Policymakers in Davos)
The JPMorgan executive also said that the housing market has "totally bottomed," but that a stronger economy will be what really drives housing.
In terms of its own business, JPMorgan is investing as if it were a normal environment, even though low interest rates are squeezing its net income by $500 million a year. "There will be a reverse side to this," he said. "Rates will go up someday and we'll get that back."