If there is a bubble it is in government bonds, JP Morgan's Dimon says

JP Morgan boss Jamie Dimon cautioned of the risk that the US central bank does "too little too slow".

Speaking in an interview with CNBC on Thursday evening, and when asked whether the Federal Reserve will raise interest rates again at the end of December, he said that policymakers should not be overreacting to stockmarkets being up or down, or if people are afraid of trade or stuff like that.

"So I think they will probably stay on course," he said.

On the subject of potential excesses in mortgages or car loans, the banker said that there weren't any, explaining that the latter were "not weakening", they were "humming along".

Neither did he see any problems looming in the corporate credit space.

However, if there was a bubble anywhere, it would be in government bonds, explaining that around the world interest rates had been suppressed for eight years now and pointing at continued bond purchases by the European Central Bank.

Indeed, he thought the yield on the benchmark 10-year US Treasury note should be at 4.0%.

Does he expect the US and China to reach a trade deal? It was more likely than not he said, putting the odds at 60:40.

To take note of, during his interview he also referenced market chatter that Americans had been detained in China, adding that the White House probably had no idea last Saturday that the Attorney General's office for the Southern District of New York was seto ask Canada for the detention of Chinese tech giant Huawei's finance chief.