JPMorgan Chase (NYSE:JPM) CEO Jamie Dimon is one of the most respected business leaders in the United States. Aside from Warren Buffett and maybe a few other A-list CEOs, Dimon's letters to investors and general economic and stock market commentaries are some of the most closely followed by investors.
Not surprisingly, Dimon has some interesting thoughts about the 2020 presidential election. The long-tenured CEO (who weighed a presidential bid of his own), has recently shared thoughts on whether we'll have a contested election, how the results will impact the U.S. economy, and more.
Will the election run smoothly?
One of the biggest concerns going into the election is that it won't be a smooth process -- particularly, that we'll end up with a contested election result. But Dimon doesn't think this will happen. In mid-October, Dimon told reporters on the bank's quarterly earnings conference call, "I have great faith in this country and I'm sure we'll have a proper election."
"The peaceful and stable transition of power -- whether it is to the second administration of a president or a new one -- is a hallmark of America's 244-year history as an independent nation," said Dimon in a memo to employees a week later. And Dimon went on to say:
Our long history of observing and celebrating the continuation of our government is one of the most powerful symbols of that respect. While we understand there is tremendous passion and strong opinions, the responsibility each of us has to respect the democratic process and the election outcomes is paramount. That's the power of democracy.
What will happen to the U.S. economy after the election?
In September, Dimon said that whoever wins the White House won't likely have a big impact on the U.S. economy -- at least not right away.
Dimon has cautioned against a "wealth tax" like several democrats have suggested, but this isn't one of former Vice President Biden's plans. However, Dimon is generally in favor of increasing the income tax rates on the wealthy. On the other hand, Dimon also said that President Trump's tax policies have generally been a positive for the U.S. economy and has expressed support for the regulatory reforms that have been implemented.
Whichever way the U.S. votes, Dimon is right that it will likely take some time until we start seeing economic effects. The Tax Cuts and Jobs Act, which has been the Trump administration's most significant legislative achievement, wasn't passed until more than a year after Trump was elected president, and the economic effects took even longer to start to take effect.
Who does Dimon want in the White House?
Dimon generally stops short of expressing his own political views, and he's given some conflicting information. He has a record of contributing to the campaign efforts of mostly republican candidates, but has called himself "barely a Democrat," and has been quite critical of our current president in recent years.
In fact, in 2018 -- while Dimon was reportedly considering a run for the presidency himself -- Dimon said that he could beat Donald Trump in an election "because I'm as tough as he is, I'm smarter than he is." On the other hand, Dimon has criticized democrats for attacking businesses, particularly on the "liberal side" of the democratic party. Dimon's stance on political issues, such as the need for a stimulus, is typically to call for both sides to compromise and get things done.
While Dimon (and JPMorgan Chase itself) would likely benefit financially under a second Trump term, we don't really know who Dimon is voting for or who he truly wants in the White House.