Ten years ago, Detroit was still recovering from the 2007/2008 Great Recession in which hundreds of thousands of people lost their jobs and Detroit’s biggest industry, the auto industry, was struggling. JPMorgan Chase & Co JPM invested more than $200 million in an effort to jump-start business growth and help Detroit citizens access capital.
JPMorgan CEO Jamie Dimon traveled to Detroit to speak to the Detroit Economic Club (DEC) on Wednesday at the MotorCity Casino and Hotel. Dimon spoke about the company’s commitment 10 years ago and how the efforts could be viewed as a blueprint for other communities trying to revitalize their economies.
The commitment from JPMorgan Chase helped support more than 70,000 Detroit citizens who were placed into apprenticeships and full or part-time jobs, as well as issuing 13,000 small business loans, creating or preserving thousands of housing units and other initiatives, according to the company.
Read Also: JPMorgan Chase's $150 Million Detroit Investment: Repair, Revitalize, Reinvest
Dimon said the investments in Detroit don’t just benefit the rich or businesses. Dimon explained that in his view, when economic activity increases there are positive outcomes that help everyone.
“If you lift up Detroit it helps everyone. It helps the kids, it helps the businesses it helps the rich get richer… If a town does that well, the whole town is better off,” Dimon said.
“Detroit’s resurgence is a testament to what can be accomplished when government, business and community leaders come together to create economic opportunity,” JPMorgan Vice Chairman Peter Scher added. Scher was the person in charge of overseeing the bank's commitment.
Watch Benzinga's interview with Scher below:
On The Macroeconomy: Dimon spoke to the DEC about current interest rates and the potential risks involved with the Federal Reserve continuing to raise interest rates. Dimon said that with the vast amount of money the government is spending, on things from the military to the CHIPS Act, inflation could persist and cause the Fed to raise interest rates further.
Despite this, Dimon said the economy is strong, but that could change quickly: “Don’t confuse today with tomorrow."
Dimon spoke about President Joe Biden’s Inflation Reduction and CHIPS Act and that while he agreed certain jobs need to be brought back to the U.S., he worried the bills would lead to corruption and companies reliant on government money.
“We’re missing the boat here,” Dimon said on the Inflation Reduction Act. “We’re celebrating and spending money but that money is just going to drive inflation.
“All of these major institutions have always played a local role,” We want to be here through thick and thin. You don’t have to worry about us. We know when times are tough you need us the most.” Dimon said.
Read Next: Dimon Pours Cold Water On US Economic Optimism, Flags Global Tensions, Financial Shifts
Photo: Benzinga file photo by Dustin Blitchok
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
