One possible factor that could derail a potential rate hike is the trade wars, particularly between the United States and China. The Trump administration announced it would be moving forward with imposing a 10% tariff on $200 billion worth of Chinese goods that includes a step-up increase to 25% by the end of the year.

Less than 24 hours later, Beijing announced it will impose $60 billion worth of tariffs on U.S. goods beginning on Sept. 24.

“The president raised very, very good issues (on China),” said Dimon, but also said tariffs are “not a great way to go about it” as they “could easily offset some of the benefits from regulatory reform and tax reform.”

For more trends in fixed income, visit the Fixed Income Channel.