JPMorgan CEO Dimon Warns World Unprepared for 7% Fed Rate

JPMorgan Chase CEO Jamie Dimon warns that the world may not be prepared for a worst-case scenario of Federal Reserve benchmark interest rates reaching 7% along with stagflation. Dimon believes that if rates were to rise to 7%, it would cause stress in the system and have serious implications for American businesses and consumers. He contrasts with the consensus view that the Fed is approaching the end of its tightening cycle and suggests that going from 5% to 7% would be more painful for the economy than going from 3% to 5% was. Economists already predict a 60% probability of a US recession within the next 12 months, and a rate of 7% would burst asset bubbles and be unsustainable.