JPMorgan Chase CEO Dimon Warns of ‘6 or 7’ Rate Hikes in 2022

JP Morgan CEO Jamie Dimon looks on during the inauguration the new French headquarters of JP Morgan bank Tuesday, June 29, 2021 in Paris. (AP Photo/Michel Euler, Pool)
AP Photo/Michel Euler, Pool

Jamie Dimon thinks the market may be underestimating how many times the Federal Reserve will hike interest rates next year.

Fed Fund futures prices, which allow traders to speculate on Fed policy moves, currently imply around for rate hikes this year, with nearly a 30 percent chance of a fifth rate hike. Dimon, speaking to analysts in a conference call to discuss J.P. Morgan Chase’s fourth-quarter results, warned there could be even more.

“My view is a pretty good chance there’ll be more than 4. It could be 6 or 7,” Dimon said.

Dimon has been chief executive of J.P. Morgan Chase, the largest U.S. bank by assets and by deposits, since 2006. He has been chairman of the bank’s board of directors since 2007.

Dimon said the strength of U.S. consumers and businesses meant that the economy could withstand more hikes. What’s more, wage pressures are likely to keep up inflation, according to Dimon.

“I would expect that because almost every CEO is talking about wages and certain inflation and stuff like that,” Dimon said. “Please don’t say I’m complaining about wages. I think wages going up is a good thing for the people who have the wages going up. And businesses simply have to deal with changes in prices. So, if you — commodity prices go up and down, mozzarella goes up and down, wages go up and down. They shouldn’t be cry babies about it. They just deal with it.”

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