Jamie Dimon: The Consumer Balance Sheet Has Never Been In Better Shape

Following is the informal transcript of a CNBC interview with JPMorgan Chase & & Co. (NYSE: JPM) Chairman & & CEO Jamie Dimon on CNBCs “The Exchange” (M-F, 1PM-2PM ET) today, Monday, January 10th. Following are links to video on CNBC.com:

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JPMorgans Jamie Dimon Discusses The Impact Of Companys $250m Venture Fund On Health Care

KELLY EVANS: Welcome back, weve been speaking to the huge names at JP Morgans virtual healthcare conference throughout the day today, and our next guest is one of the greatest. JPMorgan Chase Chairman and CEO Jamie Dimon joins us now in addition to CNBCs Bertha Coombs. Bertha?
And Jamie, thank you so much for joining us. I desire to get to health care but offered where the markets are today and some interesting comments you made throughout the keynote just now, I wanted to begin off with the economy.
JAMIE DIMON: Bertha, Im thrilled to be here. I think is our first interview together. So I eagerly anticipate it. And you know, when you take a look at the economy, the consumer, all right– now this is all respect to the reality that this is not true for all customers and theres some still suffering and were still kind of overcoming this. The customer balance sheet has actually never been in better shape. Theyre investing 25% more today than pre Covid. Theyve got $2 trillion in their examining accounts either have the wherewithal to invest more. They pay for a great deal of debt. The debt service ratio has actually never been better since weve been keeping records for 50 years. House rates are up, stock costs are up, jobs abound and wages are increasing. Which all informs you whats going to happen in the future. Theyre in respectable shape. And businesses, self-confidence is high, theyve got lots of cash and capital. So underlying, weve had this strong economy. The numbers are herky jerky– inflation, development, employment, unemployment, individuals going back to work, the fantastic resignation– however that underlying stuff is critical and is pressing you understand– were going to have, what, the finest growth year weve ever had this year I think given that you understand, perhaps sometime after– prior to the Great Depression. Therefore next year will be quite great too. But undoubtedly theres some negatives out there, however those things look respectable. The market is various Bertha. And you understand, the market can have its own changes and unassociated to the economy. I believe you need this type of grown to justify the marketplace. So were sort of anticipating that the market will have a lot of volatility this year as rates increase and individuals sort of look and renovate projections at you understand, the impact of rates of interest and businesses differently than they did before.
COOMBS: One of the important things that the marketplace is concentrated on is the Fed. Goldman Sachs coming out this morning saying they now forecast that the Fed might in fact raise rates 4 times this year. You think the Fed may be able to craft a soft landing though?
You understand, listen, Bertha, no one knows the future. You understand, a lot of individuals task inflation be 2.3% at the end of this year, I do not. You understand, and its going to be a little bit like threading the needle.
COOMBS: Its fascinating, I thought among the important things that you said was that if we do get a Fed induced economic downturn, that does not have to be painful or long.
DIMON: Yeah, if you look at history, alright, and, you know, theres no typical, you know, one type of recession. And so, you know, and unemployment goes up and not a lot. And, you understand, hopefully, possibly Omicron– we do not understand what the future difference will be, but hopefully Omicron may be putting this COVID-19 in rearview mirror.
COOMBS: You understand, obviously, health care has actually been among the locations thats been causing inflation for a long period of time but provided that inflation is so hot, it seems relative now. Changing to healthcare, I want to discuss your brand-new venture. You released Morgan Health last year, you tapped Dan Levinson, the founder and CEO of Avalere Health, to lead it and among the huge parts of that is that youve got $250 million youre going to use in endeavor financial investments. Why is that so essential?
DIMON: So, look at the huge image here. Americas got some of the best healthcare in the world, pharma, medical professionals, medication, healthcare facilities, Im a recipient of that, however its 18% of GDP. The remainder of the world, the establishing world is at 9% and we do not have the very best outcomes, returnee care or weight problems or cancer care, high blood pressure is worse than a great deal of folks so that we can acknowledge those issues and attack them. So, were attacking from the employer standpoint, weve got magnificent people who manage our health care, but, however, however Dan Mendelson hired an excellent group of individuals and who can be utilizing things like AI and cloud accountable care so were trying this thing in Columbus through Vera, where were gon na try to get people more primary care doctors to help them navigate, you know, through the healthcare system. If you just do a better task handling individualss high blood pressure or handling musculoskeletal illness, you can have better outcomes at a lower cost if you can intervene appropriately, if you get more people do wellness programs. And I think AI and cloud will do a lot here so, you understand, we hope for better outcomes for our folks through better health care and more cost and as part of that effort, the group is also looking at the racial healthcare like, you understand, it is real that people who are lower income have worse health care than individuals with higher income and we should do something about that. I should explain to the people on CNBC, JPMorgan for years has subsidized health care far more for lower paid people than for higher paid, part of it in recognition of that.
COOMBS: I have actually spoken to Dan about a few of the efforts that theyre doing and theyve gotten, going very rapidly. Youve got one agreement in Columbus, Ohio. You have 38,000 staff members that is going to be based on attempting to manage chronic conditions and then youre dealing with a handle Kaiser Permanente out in California to deal with these health equity issues and attempt to lower those health variations. But youre likewise spending $1.8 billion a year on healthcare. You are intention on bringing those expenses down. How do you measure success here? Is it about results, or is it about bringing costs down?
DIMON: Its really about results, you understand, outcome. Better results is that we understand you that we find out that you conceal your diabetes, we do something about it. The factor why I know about it who stated we will not allow physician cracks in here that are out of network.
COOMBS: You know, a lot of what youve currently begun to do with Morgan healthcare is what was the intent and the goal of your endeavor with Amazon and Berkshire Hathaway if Haven never ever got off the ground? What went wrong there?
DIMON: Yeah, look, we learned a lot from our prior ventures but were on the very same course. We began with, the celebrations went different methods. Weve discovered a lot and were continuing. So, you understand, and weve learned a lot part is essential. Jeff Bezos constantly talks about, you understand, failures you gain from something so I do not stress that much about what went wrong. What Im concerned about what we learned, how we go forward. Were fortunate to get Dan Mendelsohn and his group included. These folks are professionals in, in health care and medical professionals and science and AI and working very closely with Bernadette and her team at JPMorgan doing these intricate healthcare things. So, I am convinced that this thing will have much better results for our workers. And then if weve discovered things, were going to show the world too. And there will remain in my view and youve seen it already, a great deal of policy things that individuals can do around healthcare facility publishing costs, you understand, surprise billings, I believe telemedicine digital site and that digital medication and, you understand, AI will truly help you over time too.
COOMBS: One of the most important healthcare problems that youre handling today, naturally is COVID and the brand-new Omicron surge. At Citi, they have stated that employees who are not vaccinated by the end of this week will lose their tasks. Where do you stand today on mandates if they are upheld by the courts which it stands for now at least they are, and what does that mean for back to work?
DIMON: Yeah, so you know, we, we think that going to work is a great thing that people deal with each other for innovation and imagination and simply just humankind is a good thing. In our main head office structure, we have a vax required however remember, 97% of the people are vaxxed so to go to the office, you have actually to be vaxxed and, you know, if you arent going to get vaxxed, you wont be able to work in that office. Military goes to work, police goes to work, firefighters go to work, sanitation, agricultural workers, bank branches, manufacturing, Amazon, UPS, FedEx, supply, logistics, meatpacking, youre talking about 40 or 50 million who, its excellent theres flexibility and overtime, you understand, if you can accommodate that, thats an excellent thing, however its likewise got to work for the business.
COOMBS: Jamie, thank you a lot for joining us, and Im enthusiastic that maybe we can act on a few of the development that you make with Morgan Health in individual one of nowadays.
DIMON: So Bertha, thank you extremely much for having me. I just want to point out, I like the reality that a bipartisan infrastructure costs, please, please, please, lets all work together and collaborate.
COOMBS: Alright, thanks again. Jamie. Jamie Dimon, Chairman & & CEO of JPMorgan from the JPMorgan Healthcare Conference.
Upgraded on Jan 10, 2022, 3:15 pm

The numbers are herky jerky– inflation, growth, work, unemployment, individuals going back to work, the great resignation– but that underlying stuff is vital and is pressing you know– were going to have, what, the finest growth year weve ever had this year I believe given that you know, possibly at some point after– before the Great Depression. You know, listen, Bertha, no one understands the future. DIMON: Yeah, if you look at history, fine, and, you understand, theres no common, you understand, one type of recession. And I think AI and cloud will do a lot here so, you know, we hope for much better results for our folks through better healthcare and more price and as part of that effort, the team is also looking at the racial healthcare like, you understand, it is real that individuals who are lower income have worse healthcare than people with higher income and we need to do something about that. And there will be in my view and youve seen it already, a lot of policy things that individuals can do around health center publishing costs, you understand, surprise billings, I think telemedicine digital website and that digital medication and, you understand, AI will actually help you over time too.

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