JP Morgan's Pinto says Fed to hike towards 5.5%, see a US recessionJPMorgan's President and Chief Operating Officer Daniel Pinto spoke on Friday ICYMI.
Said lending is slowing due to both supply and demand issues:
"There is no doubt that regional banks and smaller banks are building up liquidity, building capital, so they are lending a bit less"- "I don't think that the big banks have really changed their lending standards... there is not a huge amount of loan demand in the first place."
On the economy and Federal Reserve:
consumption remains positive- there are some indications the economy is slowing
"Likely the Fed will get to run towards 5.5% and then they will pause" to assess inflation ... If inflation accelerates further, the Fed could raise rates 50 basis points with a series of smaller rate hikes- will be a "recession at some point", but doesn't see a crisis, "It's just a slowdown in the economy"
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Next Fed dates i June 13 &14:
This article was written by Eamonn Sheridan at www.forexlive.com.
Source: JP Morgan's Pinto says Fed to hike towards 5.5%, see a US recession (https://www.forexlive.com/centralbank/jp-morgans-pinto-says-fed-to-hike-towards-55-see-a-us-recession-20230605/)
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