Good U.S. fiscal policy could make the economy globally competitive and unleash substantial growth, JPMorgan [ JPM 59.77 +1.34 (+2.29%) ] CEO Jamie Dimon told the Miami Chamber of Commerce on Monday.
"Business is sitting there poised to grow," he said. "The default state is for businesses to grow. If we get growth, you'd be surprised at the tax receipts and the ability to pay down debt. That's why we need good policy right now."
To get good policy, there needs to be thoughtful debate and compromise, Dimon said.
(Read More: Tax Reform Will Be a 'Death Struggle': Alan Simpson )
That could unleash significantly faster growth than the 2 percent expected this year under a best-case scenario. "If we have good fiscal policy, America could start growing at 4 percent and create 400,000 jobs a month," Dimon said.
That would also mean a rise in interest rates in 2014, with the federal funds rate reaching 3 percent and rates on the 10-year Treasury note at about 5 or 6 percent.
But under a worst case scenario, U.S. policies do not deal with growth and there's inflation anyway. Dimon said that with stagflation, rates could spike as high as 7 to 9 percent.
"What we need is good fiscal policy and we can avoid the really bad outcomes," Dimon said. "The Fed needs help from Congress."Page 1 of 2 | Next Page