The world may not be prepared for a worst-case scenario of Federal Reserve benchmark interest rates hitting 7% along with stagflation, JPMorgan Chase & Co. CEO Jamie Dimon said in an interview with the Times of India in Mumbai.

“If they are going to have lower volumes and higher rates, there will be stress in the system,” he said. “Warren Buffett says you find out who is swimming naked when the tide goes out. That will be the tide going out.”

Dimon, who has said rates may need to rise further to fight inflation, added that the difference between 5% and 7% would be more painful for the economy than going from 3% to 5% was.

“Going from zero to 2% was almost no increase. Going from zero to 5% caught some people off guard, but no one would have taken 5% out of the realm of possibility,” he said. “I am not sure if the world is prepared for 7%.”