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Washington has a way of making the economy feel good. But Jamie Dimon wants Americans to look at what's fueling the high.
Speaking at the Economic Club of Chicago earlier this month, the CEO of JPMorgan Chase (NYSE: JPM) compared government spending to a powerful drug — one that can boost corporate profits while setting the stage for a painful aftermath.
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"We've got to remember about government spending: It's inflationary," he said (1). "It also does something which is unbelievable — makes you all feel good. It's like heroin. It drives your corporate profits."
For Americans watching their savings, that's a troubling combination. Businesses can report stronger earnings while the dollars you've worked to put away buy less at the grocery store, gas station and checkout counter.
Dimon explained how the money moves through the economy: "When governments spend a trillion dollars, that goes into spending, that goes into all your businesses. Machine tools, burgers, pools, homes."
"And then we all feel good because we're all making a lot of money," he said. "And it's a little bit of a false thing if it's inflationary, which it is."
Washington's borrowing habit gives that warning plenty of weight.
According to Treasury Department data (2), the U.S. government spent $7.40 trillion in fiscal 2026 while collecting $5.40 trillion in revenue, resulting in a deficit of $1.99 trillion — an increase of $217 billion from fiscal 2025.
Dimon made clear that his concern stretches beyond one administration's signature legislation.
"It wasn't the One Big Beautiful Bill, guys," he said. "We have been profligate now for years."
So how does America's biggest bank protect itself?
It prepares for trouble before trouble arrives.
"We prepare for low rates, high rates, stock price down 40%, credit spreads going up, bond rates at 8%, high yield at 15%," Dimon said. "And JPMorgan can handle all of that."
For everyday Americans, the inflationary pain Dimon warned about is already hitting home. U.S. consumer prices have climbed 29.8% (3) since the beginning of 2020, with energy prices soaring 53.5% (4) over the same period.
Look further back and the damage inflation has done to Americans' purchasing power becomes even more striking. According to the Federal Reserve Bank of Minneapolis (5), $100 in 2026 has the same purchasing power as just $11.65 did in 1970.
That's right. $100 is worth less than $12.
That's why Americans are looking beyond cash and traditional savings when thinking about how to protect their purchasing power.
Here's a look at three time-tested strategies.
Own something the government can't print
When it comes to preserving wealth and fighting inflation, few assets have stood the test of time like gold.
Its appeal is simple: Unlike fiat currencies, the yellow metal can't be printed at will by central banks. This inherently limited supply can help it store value.
Gold is also considered the ultimate safe haven. It's not tied to any one country, currency or economy and in times of economic turmoil or geopolitical uncertainty, investors often flock to it — driving prices higher.
Ray Dalio, founder of the world's largest hedge fund, Bridgewater Associates, has repeatedly highlighted gold's role in a resilient portfolio.
"People don't have, typically, an adequate amount of gold in their portfolio," Dalio told CNBC last year. "When bad times come, gold is a very effective diversifier."
Over the past five years, as inflation continued to chip away at the purchasing power of the dollar, gold has climbed 125%.
Last year, even Dimon himself has acknowledged gold's appeal, saying that it can "easily" rise to $10,000 an ounce.
One way to invest in gold that can also provide significant tax advantages is to open a gold IRA with the help of Goldco .
Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, thereby combining the tax advantages of an IRA with the protective benefits of investing in gold , making it a compelling potential option for those wanting to ensure their retirement funds are diversified during rough economic times.
Goldco offers free shipping and access to a library of retirement resources. Plus, the company will match up to 10% of qualified purchases in free silver .
If you're curious whether this is the right investment to diversify your portfolio, you can download your free gold and silver information guide today .
Skip 6 decades of reading: Get Warren Buffett's best investing lessons in 1 free guide
An income-producing inflation shield
Gold isn't the only asset investors turn to during inflationary times. Real estate has also proven to be a powerful hedge.
When inflation rises, property values often increase as well, reflecting the higher costs of materials, labor and land. At the same time, rental income tends to go up, providing landlords with a revenue stream that adjusts for inflation.
Over the past ten years, the S&P Cotality Case-Shiller U.S. National Home Price NSA Index (6) has jumped by 84%, reflecting strong demand and limited housing supply.
Of course, high home prices can make buying a home more challenging, especially with mortgage rates still elevated. And being a landlord isn't exactly hands-off work — managing tenants, maintenance and repairs can quickly eat into your time (and returns).
The good news? You don't need to buy a property outright — or deal with leaky faucets — to invest in real estate today. Crowdfunding platforms like mogul offer an easier way to get exposure to this income-generating asset class.
As a real estate investment platform offering fractional ownership in blue-chip rental properties , mogul gives investors monthly rental income, real-time appreciation and tax benefits — without the need for a hefty down payment or 3 a.m. tenant calls.
Founded by former Goldman Sachs real estate investors, the team hand-picks the top 1% of single-family rental homes nationwide for you. In other words, you gain access to institutional-quality offerings for a fraction of the usual cost.
Each property undergoes a rigorous vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Offerings often sell out in under three hours , with investments typically ranging between $15,000 and $40,000 per property.
Sign up for an account and browse available properties here to start investing today.
Another option is Lightstone DIRECT , which gives accredited investors access to single-asset multifamily and industrial deals.
Lightstone DIRECT's direct-to-investor model ensures a high degree of alignment between individual investors and a vertically-integrated, institutional owner-operator — a sophisticated and streamlined option for individual investors looking to diversify into private-market real estate.
With Lightstone DIRECT, accredited individuals can access the same multifamily and industrial assets Lightstone pursues with its own capital, with minimum investments starting at $100,000.
Work with an expert
JPMorgan prepares for a range of economic outcomes. Your financial plan deserves the same attention.
How much should you hold in cash? Where might gold and real estate fit? And if inflation stays elevated, will your retirement income keep up?
Those decisions go hand in hand with managing withdrawals, minimizing tax exposure and making your savings last.
Working with a financial advisor can help you bring those pieces together and avoid costly mistakes.
If you have a portfolio of $250,000 or more, platforms like WiserAdvisor can connect you with vetted professionals who specialize in this kind of planning.
Simply answer a few questions about your savings, retirement timeline and overall investment portfolio.
From there, WiserAdvisor reviews its network to match you — for free — with up to three vetted, reputable advisors aligned with your specific needs.
You can then schedule no-obligation consultations with your matches to determine who is the best fit for your long-term goals.
WiserAdvisor is a matching service and does not provide financial advice directly. All matched advisors are third parties and specific financial results are not guaranteed.
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Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines .
YouTube ( 1 ); U.S. Department of the Treasury ( 2 ); Federal Reserve Economic Data ( 3 ), ( 4 ); Federal Reserve Bank of Minneapolis ( 5 ); S&P Global ( 6 )
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
