The Financial Post reports in its Wednesday, Sept. 27, edition that JPMorgan chief executive officer Jamie Dimon said in an interview with the Times of India in Mumbai that the world may not be prepared for a worst-case scenario of Federal Reserve benchmark interest rates hitting 7 per cent along with stagflation. A Bloomberg dispatch to the Post reports that Mr. Dimon said: "If they are going to have lower volumes and higher rates, there will be stress in the system. Warren Buffett says you find out who is swimming naked when the tide goes out. That will be the tide going out." Mr. Dimon, who has said rates may need to rise further to fight inflation, added that the difference between 5 per cent and 7 per cent would be more painful for the economy than going from 3 per cent to 5 per cent was. His comments come amid the consensus view that the Fed is approaching the end of its tightening cycle after 5.25 percentage points of hikes that lifted the benchmark to 5.5 per cent -- the highest level in 22 years. Still, U.S. policymakers have signalled that rates will need to stay higher for longer to contain inflation, though money markets are pricing in cuts from next year.