Jamie Dimon says the Fed should pause rate hikes, but also warns it’s a new era for the economy

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Markets breathed a sigh of relief earlier this month when Federal Reserve Chair Jerome Powell signaled the central bank was open to pausing interest rate hikes at its next meeting in June. But JPMorgan Chase CEO Jamie Dimon is warning that inflation is sticking around much longer than many hoped it would, and the Fed’s war against rising prices isn’t over yet.

Pausing right now would be a smart choice for the Fed, Dimon said in an interview with Bloomberg Wednesday while attending JPMorgan’s Global China Summit in Shanghai. But inflation is still not on the permanent downward path the Fed would like to see, he added, cautioning investors and businesses to see the momentary interruption for what it is.