JP Morgan CEO Dimon calls for Federal Reserve rate hike

Jamie Dimon, Chief Executive Officer of US investment bank JPMorgan Chase, has said that the Federal Reserve should raise interest rates at its September meeting.

While speaking at the Economic Club of Washington on Monday, Dimon urged Janet Yellen and her colleagues to make the decision, saying "let's just raise rates".

"The Fed has to maintain credibility. I think it's time to raise rates. Normality is a good thing, not a bad thing. The return to normal is a good thing," he added.

Policymakers at the Fed are due to meet next week in Washington and it is not yet clear whether they will decide to increase the rates or not. Early signals indicated that it was part of their plans, but a disappointing jobs report appears to have cooled the speculation.

Banks typically gain from a rise in interest rates due to the widening gap between what they charge borrowers and pay depositors, and as the boss of the biggest bank in the US, Dimon is clear which side he rests on.

"I'd go sooner rather than later, but I’ll leave the exact timing up to them," Dimon said.

Dimon also responded to a question about whether he would like to enter the world of politics or not, saying that he would "love to be president" but tat the job would be too difficult.