U.S. Fed should raise rates 'sooner rather than later' -JPMorgan's Dimon

MarketsReuters

JPMorgan Chase & Co Chief Executive Jamie Dimon said on Monday that he believes the U.S. Federal Reserve should raise interest rates due to the strength of the economy.

"Let's just raise rates," Dimon said before an audience at the Economic Club of Washington, DC, adding that another rate increase of 25 basis points would be "a drop in the bucket."

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The U.S. central bank has held rates steady after raising them for the first time in a decade from near zero last December. Its next policy meeting is Sept 20-21.

It has repeatedly held off in part due to fears on the U.S. and global economic growth outlook and tepid inflation.

"The rate itself gets much more pyshological attention than the actual economic effect of raising rates," Dimon said, when asked if he thought the U.S. central bank should raise rates next week or wait until December. "I'd go sooner rather than later."

(Reporting by Lindsay Dunsmuir; Editing by Chizu Nomiyama)