Jamie DimonThe Managing Director of JPMorgan Chase & Co JPMhas reportedly warned against declaring victory against inflation too soon federal reserve could raise interest rates above the 5% mark if higher prices remained sticky.

Dimon’s comments follow the optimism that US markets showed afterwards federal reserve Chair Jerome Powell repeatedly during a discussion around The Business Club of Washington, DC on Tuesday that the disinflationary process has begun.

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“People should take a deep breath here before declaring victory because the month number looked good,” he said, according to a Reuters report. “It’s perfectly reasonable for the Fed to go to 5% and wait a while,” Dimon added.

He also noted that if inflation falls to 3.5% or 4% and stays there, “you might have to go higher than 5% and that could affect short rates and longer rates,” he told Reuters.

Official Fed comments: Central bank officials appear to be trying to coordinate since Mohamed El Erian highlighted in his tweet to correct that Markets understanding of Chairman Powell’s comments.

fed governor Christopher Waller Said in his remarks at an Arkansas State University conference that while wage growth has slowed, the decline is not enough and that “the Fed needs to maintain a tight monetary policy stance for some time,” according to a Reuters report.

Debt ceiling: Dimon also pointed out that a US debt default would be potentially “catastrophic.” “We cannot have a default,” Dimon said, adding that such a scenario could cause lasting damage to America and “destroy its future,” he said.

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