JPMorgan's Dimon: Money repatriation will create "QE4" stimulus

The CEO of JPMorgan Chase, Jamie Dimon thinks there could be other stimulus in the market, but will not come directly from the government. He told reporters that the order for repatriation back to the US corporate cash held outside the country will significantly stimulate economic growth, regardless of how companies use these funds.

According to him, if all companies were pay dividends and buy back stock by repatriated funds that would be like QE4 (Quantitative Easing) and far cheaper.

Dimon warned that putting restrictions on how repatriated funds could be used might preclude the U.S. from economic activity that would remain abroad instead. The money that are not returned will be reinvested in another country in a production or acquisition as it happens and never to return back, he said.

Trump's administration has a clear desire to return the money back to the country. Chief equity strategist at Goldman Sachs, David Kostin predicts that $200 billion will be repatriated, with about $150 billion will be used for corporate redemption.

Source: Yahoo Finance

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