The JP Morgan CEO expects seven rate hikes from the Fed

The CEO of Wall Street's biggest bank says the Fed may need to raise rates more than the markets expected.

JP Morgan CEO Jamie Dimon told analysts that the Fed may need to raise rates 6-7 times to fight inflation. With the Fed's statements that they will fight against the rise in inflation, the market's expectations for a rate hike for this year have already risen.

Inflation in the USA reached 7 percent, the highest level in 40 years. Swap markets are pricing in 3 to 4 rate hikes this year. Fed officials are also giving signals that a rate hike may begin in March. Fed members expect a total of 75 basis points of interest rate hikes this year.

Speaking at the meeting where JP Morgan 's fourth quarter balance sheet was announced yesterday, Dimon said, "My opinion is that there will be more than four rate hikes. It could be 6 or 7. Consumers are strong and companies are doing very well. The situation looks pretty good in terms of growth, the only problem is inflation," he said. Dimon added that the assumption that the economy will not grow in an environment where interest rates increase would be a mistake.

In an interview the day before, Dimon said he would be surprised if the Fed only raised interest rates four times this year.

In its statement this week, Goldman Sachs predicted four rate hikes from the Fed this year. Deutsche Bank is among the banks waiting for four interest rate hikes.