JPMorgan Chase CEO Jamie Dimon believes U.S. interest rates will likely rise above 5 percent because of “underlying Inflation.” This is higher than what the Federal Reserve is currently projecting, as inflation remains stubbornly high.
The Fed has raised its benchmark interest rate in December to a targeted range of 4.25–4.5 percent, the highest level in 15 years, in order to suppress rising prices.
The central bank’s anticipated “terminal rate”—the target at which policymakers expect to end the rate hikes—was set at 5.1 percent during the policy meeting in December 2022. The Fed intends on raising rates until inflation falls to a 2 percent target….