While President Donald Trump celebrates gains in the economy as job numbers rise, a prominent banking executive is warning investors that the Federal Reserve may have to take "drastic action" to combat massive inflation that is to come.

"Many people underestimate the possibility of higher inflation and wages, which means they might be underestimating the chance that the Federal Reserve may have to raise rates faster than we all think," JP Morgan Chase CEO Jamie Dimon wrote in an annual letter to shareholders, according to the Financial Times.

"We have to deal with the possibility that, at one point, the Federal Reserve and other central banks may have to take more drastic action than they currently anticipate."

Following the massive banking crisis that took place in 2008, the Federal Reserve engaged in quantitative easing (QE). Due to this policy, the Fed injected $3.5 trillion into the economy from 2009 to 2014, essentially out of thin air. American Enterprise Institute scholar Mark J. Perry called this a "gigantic transfer of wealth from the private sector to the public sector." Now all Americans will have to share in the pain as the consequences for this reckless monetary policy come to pass.

"QE has never been done on this scale," Dimon said. "We cannot possibly know all of the effects of its reversal."