JPMorgan Chase International Chairman Jacob Frenkel said Friday the U.S. economy is doing well, but he doesn't believe that tax reform will produce growth of above 3 percent.
"But every one-tenth of 1 percent is producing jobs, and it would be a shame not to do it," Frenkel said in an interview on CNBC's "Squawk Alley."
He said "political games" could delay tax reform, but he hopes Republican lawmakers succeed.
"Deregulation is already in place, and this is a big plus," he said. "We need to bring some of the profits that are locked abroad back to this country that will stimulate investment and growth."
The GOP unveiled its blueprint for tax reform last month. It calls for cutting personal and corporate tax rates and aims to simplify the U.S. tax code.
Chief White House economic advisor Gary Cohn has said the plan will be financed entirely through economic growth. President Donald Trump has predicted his policies, including tax reform, would spur growth of 3 percent.
Speaking to a crowd in Pennsylvania on Wednesday, Trump said the plan would boost wages and put more money into Americans' pockets.
Frenkel also said the Federal Reserve should normalize interest rates and he would be "surprised and disappointed" if it does not hike rates in December. "What is more important for the markets is the trajectory that the Fed is projecting," he said.
Many economists expect the Fed to raise rates in December. On Friday, departing Fed vice chair Stanley Fischer said he expects the Fed will hike in December and three times next year.