Jamie Dimon, the head of JPMorgan Chase, said his bank has prepared for interest rates to jump because of “persistent inflationary pressures”.

Central banks around the world have been busy raising rates in a bid to dampen rising prices.

But with US inflation gradually easing, the overwhelming expectation is for the Federal Reserve to cut rates this year.

Markets are pricing in two quarter-point rate cuts in 2024.

In his annual letter to shareholders, Mr Dimon said that the bank was ready for a “very broad range” of rates, from 2% to 8% or even higher, potentially pushed up because of high government spending and the need to curb price rises.

Mr Dimon’s comments come as US interest rates rest in the range of 5.25% to 5.5% – higher than they have been for more than 20 years.