By Lananh Nguyen

MIAMI (Reuters) -The chief govt of JPMorgan Chase & Co. (NYSE:), the most important U.S. financial institution, cautioned towards declaring victory towards inflation too early, warning the Federal Reserve might increase rates of interest above the 5% mark if larger costs ended up “sticky.”

Dimon’s warning got here after Federal Reserve officers stated extra price rises are on the playing cards, though none have been able to counsel that January’s sizzling jobs report might push them again to a extra aggressive financial coverage stance.

In reference to inflation, Dimon stated “individuals ought to take a deep breath on this one earlier than they declare victory as a result of a month’s quantity regarded good.”

“It’s completely affordable for the Fed to go to five% and wait some time,” Dimon stated.

But when inflation comes down to three.5% or 4% and stays there, “you might have to go larger than 5% and that might have an effect on quick charges, longer charges,” he stated.

From a peak of almost 7% in June, the Fed’s most popular measure of inflation stood at 5% in December – nicely above its 2% goal however heading steadily downward.

In a wide-ranging interview with Reuters, Jamie Dimon warned stricter regulation of bank card charges might immediate lenders to increase much less credit score. He additionally stated he deliberate to go to China, saying it was necessary to keep up relations there.

Dimon additionally stated a default on U.S. debt – a prospect the nation faces except its debt ceiling is raised – could be probably “catastrophic.”

“We can not have a default,” Dimon stated. It might trigger everlasting injury to America and “might destroy its future,” he stated.

President Joe Biden, in his tackle to a joint session of Congress on Tuesday, urged Republicans to boost the $31.4 trillion debt ceiling, which should be lifted within the coming months to keep away from a default.

JPMorgan stated earlier it plans to rent greater than 500 bankers catering to small companies via 2024, boosting the financial institution’s workforce concentrating on the phase by 20% from greater than 2,300 now.

Requested about JPMorgan’s plans for jobs given cuts at different Wall Road banks, Dimon stated the outlook for hiring stays up on the financial institution.

“We’re nonetheless opening branches and typically all over the world, we’re nonetheless hiring bankers, client bankers, small enterprise bankers, center market bankers, people abroad… we’ve extra purchasers to cowl,” he stated.

Wall Road giants, together with Goldman Sachs Group Inc (NYSE:) and Morgan Stanley (NYSE:), have reduce hundreds of jobs as a worsening financial outlook depressed dealmaking, whereas mortgage lenders have additionally trimmed workers.