JPMorgan CEO Jamie Dimon said the federal reserve "may very well" raise the interest rate to 6 percent, a move higher than most officials and Wall Street strategists are anticipating, Yahoo Finance reported Jan. 10.
While many are forecasting a 5 percent rate hike, Mr. Dimon said during JPMorgan's annual healthcare investment-banking conference he is unsure if that hike would be enough to slow inflation "to where it needs to be." He cited fiscal stimulus that was "so large and still largely unspent."
Mr. Dimon was one of the first on Wall Street to correctly predict that Federal Reserve officials would make up to six or seven increases to their benchmark policy rate as prices rose rapidly, according to the report. He said the three or four hikes investors were preparing for was a low estimate.
He also told Fox Business on Jan. 10 that Federal Reserve officials should move the rates to 5 percent and then wait three to six months to see what the "full effect of this is around the world," according to the report.
"I'm on the side where it may not be enough," he said.
The U.S. central bank raised rates seven times in 2022 to a cumulative increase of 4.25 percent, according to the report.