The surge in U.S. interest rates that rattled global equities markets isn't likely over, according to J.P. Morgan Chase CEO Jamie Dimon.



"I have much higher odds of it being 4 percent than most other people," Dimon said Friday on his bank's earnings conference call. "The market may not take it that well if rates go up because it'll surprise people, but people shouldn't be surprised."

The 10-year Treasury yield was at 3.16 percent on Friday, up significantly in the last month, a move that sparked the longest decline in the S&P 500 in almost two years. Investors are concerned that the Federal Reserve will increase rates too quickly, hampering the growth of companies and increasing costs for consumers.

Dimon expressed confidence that the momentum of the economy could absorb higher rates.



"The economy is strong, [so] rates are going up," Dimon said. "Most of us consider it a healthy normalization and going back to more of a free market when it comes to asset pricing and interest rates, etc. And we need that. So to me overall it's a good thing, particularly if the economy is strong."

— With reporting contribution from CNBC's Michael Sheetz.