JPMorgan CEO Jamie Dimon reportedly said everyone must be prepared for higher interest rates and noted that credit is already tightening up.

"You are already seeing credit tightening up because you know the easiest way for a bank to retain capital is not to make the next loan. So, I think you are going to see that. And I think everyone should be prepared for rates going higher from here," Dimon said while speaking at the bank's investor conference, according to video posted by Bloomberg.

"You should be prepared for 6-7(%)," he added.

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Indeed, although the equity market is still reflecting optimism, persistent rate hikes by the Federal Reserve and the ongoing debt ceiling crisis has taken a toll on treasury yields.

The iShares 1-3 Year Treasury Bond ETF (NASDAQ:SHY) and the Vanguard Short-Term Treasury Index Fund ETF (NASDAQ:VGSH) lost over 0.4% in the last five days, according to Benzinga Pro.

"The Fed doesn’t control the five or ten-year rate, they control the overnight rate. So while they’ve been raising overnight rate, there’s still too much liquidity in the system, which is why stocks are high…," Dimon said.

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