Dimon Calls for More Sanctions on Russia, Expresses Pity for Fed

(Bloomberg) — JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon called for ratcheting up sanctions against Russia in response to its invasion of Ukraine and said the Federal Reserve may ultimately raise interest rates more than the market expects.

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The U.S. should increase sanctions “in whatever way national security experts recommend to maximize the right outcomes,” Dimon wrote Monday in his annual letter to shareholders. The war and the resulting sanctions “will slow the global economy — and it could easily get worse.”

The geopolitical upheaval, unleashing an energy crisis that’s exacerbating already surging inflation, has put the central bank in a precarious spot. Rates will rise substantially, and the current tightening cycle “is in no way traditional,” Dimon said.

While the government and the Fed did the right thing by injecting massive liquidity into the financial system in its initial response to the pandemic, in hindsight the…