"I actually think rates are probably going to go higher than 5% ... there's a lot of underlying inflation, which won't go away so quick," Dimon said.

U.S. Federal Reserve officials in December predicted that the rate, currently in the 4.25%-4.50% range, would rise to just over 5% by the end of 2023 and likely remain there for some time.

Policymakers at the central bank have said they will continue to push with interest rate hikes to get inflation firmly under control even as the economy shows signs of a slowdown.