The Federal Reserve should not have waited until 2022 to increase interest rates as inflation rates skyrocketed, JPMorgan Chase ((JPM)) CEO Jamie Dimon told Bloomberg Television in London.
“We’re a little late,” he said in an interview Wednesday. The sooner they move the better.”
While the U.S. economy remains “very strong,” there is a 33% chance that the Fed's delay in hiking rates would yield a soft landing, Dimon said. There is also a one third chance that a mild recession could occur, he added.
The Federal Reserve's Federal Open Market Committee is anticipated to increase interest rates by another 0.5% on Wednesday, which marks the largest increase since 2000.
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Bankers Eye Debt
The central bankers are also expected to provide details of its plans to lower the size of its $8.9 trillion balance sheet.
While monetary tightening remains a priority, the ongoing war in Ukraine presents a larger risk on where the economy is headed, he added.
The sanctions from various countries against Russia appear to be working so far, but are only “a tool in the toolkit” and “not definitive," Dimon said.
Europe, which still imports oil from Russia, should receive help from Western governments, he said. A recession could occur in Europe if the ongoing war escalates.
“Global energy is precarious,” he said. “If oil goes to $185 that’s a huge problem for people and we should do everything we can today. We need to pump more oil and gas.”
The U.S. government needs to prioritize national security, including food and energy resources, Dimon said.
“The Cold War is back,” he said at the bank’s 2022 CEO Forum. “National security is always the most important thing.”
While he did not provide specifics, he said the investment and retail bank would “take care of its people” in response to a leak that the Supreme Court plans to overturn abortion rights in the U.S.
Dimon also said China “cannot possibly like” the situation that Russia, an ally, has created. He said the U.S. should discuss trade and intellectual property rights with China.
