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IPFS News Link • Federal Reserve

Jamie Dimon: Fed May Need To Go to 6%

• The Wall Street Journal

JPMorgan Chief Executive Jamie Dimon said Tuesday that the Federal Reserve may need to raise interest rates to 6% to fight inflation, which would be higher than most are expecting this year.

The Fed raised its benchmark short-term interest rate aggressively last year, from near zero in March to just below 4.5% by the end of the year. Officials have signaled their intention to lift the rate above 5% this year.

Mr. Dimon told the Fox Business channel Tuesday morning that the central bank should go to the 5% rate and then take a pause. He said that would let bankers and economists see how the economy is reacting and if inflation is easing.

Mr. Dimon said the pause may reveal there's more work to do.

"Inflation won't quite go down the way people expected," he said. "But it will definitely be coming down a bit."