JP Morgan's Jamie Dimon says Trump's tax cut will lead to economic boom this year

  • Dimon says economic growth could hit 4 percent this year.
  • In a CNBC interview at the World Economic Forum in Davos, Dimon also expressed strong support for the tax overhaul, predicting it will boost capital investment and job creation.

J.P. Morgan chief Jamie Dimontold CNBC on Wednesday that the tax cut will drive wages higher and spark an economic boom.

"I think it's possible you're going to hit 4 percent some time this year," Dimon said in an interview at the World Economic Forum in Davos, Switzerland. "I promise you, we are going to be sitting here in a year and you all will be worrying about inflation and wages going up too high."

Jamie Dimon, Chairman, CEO and President of JP Morgan Chase at the 2018 WEF in Davos, Switzerland.
Adam Galica | CNBC
Jamie Dimon, Chairman, CEO and President of JP Morgan Chase at the 2018 WEF in Davos, Switzerland.

The J.P. Morgan Chase chairman and CEO expressed his strong support for the tax overhaul, predicting it will boost growth and job creation.

"I can't believe that people think having an uncompetitive tax system is a good thing," he said. "The real benefit comes over time. Competitive taxes [will lead to] more capital, more jobs, more companies investing here."

The bank said Tuesday it will spend $20 billion over five years to raise hourly pay for works and open branches in new U.S. locations in the wake of the tax cut.

"We're adding sales people, opening more branches," he said. "We think it is good for J.P. Morgan, and we think it's going to be very good for the economy."

Dimon played down criticism that the tax cuts were too generous to corporations, saying the benefits will extend to the rest of the country.

"When you make it sound like you're giving money to rich corporations, ... the fact is that is somewhat true [but] my argument is capital investment in America drives wages [for everyone]," he said. "We're supported by 40,000 vendors. When we open those 400 branches we're talking about, there's going to be hundreds of jobs supporting those branches."