"The foundation of business is pretty strong, housing looks like it is turning, household formation is going up, and consumers are still spending," the JPMorgan chief said. "If we solve the short-term 'fiscal cliff' and the longer-run fiscal issues, the economy can boom." (Read More: Jamie Dimon: CEOs Already Cutting Back Due to 'Fiscal Cliff'.)
Everything about the housing market is flashing green, Dimon said, noting strong household formation, inventory levels, affordability and rebounding home prices in some of the worst hit markets. Housing could become a strong economic driver and job creator, he added.
Dimon said the U.S. is the greatest economic engine ever built. "It's growing slowly, it's waiting to be ignited," he said, adding that if government and business collaborate there's a greater chance of igniting that engine.