The Federal Reserve would be right in pausing its interest rate hikes, but there's a chance it could continue to hike a little more, according to JPMorgan CEO Jamie Dimon. on Wednesday, noting that the Federal Reserve has elevated benchmark rates at the fastest pace in history, from near-zero levels to upwards of 5%. Just in May, it raised rates by 25 basis points, marking its tenth hike in a row since March 2022.
"Take a pause," Dimon said."But I do think it's possible they're going to raise a little more. Inflation is kind of stickier, I think people are coming around to that, which means rates may have to go up a little more. People should be a little prepared for that," he added. Despite the Fed's aggressive efforts to slow down the rate of price pressures, inflation still remains above central bank target of 2%. The latest Consumer Price Index reading showed inflation rose 4.9% through April, just below the 5.0% forecast.
Dimon is among several market thinkers bearish about the US economy. He's previously warned of a looming sparked by a US credit crunch, and said turmoil in the banking industry will cause repercussions for years to come.