The 160 stat does nothing to help cool the engine. Its gonna run the temp its gonna run no matter what temp stat you put in. It just lets water circulate a little faster during warm up. If it aint pukin water your probly ok. Jeep sensors and gauges are notoriously inaccurate. Check your radiator for debris and check to make sure your fan is coming on at the right temp if its electric. If you have a fan clutch it may be bad and not allowing the fan to spin fast enough.