Daniel Pinto is president and chief operating officer of JPMorgan.
He spoke at an event in Washington DC, saying the Federal Open Market Committee (FOMC) would not cut rates this year unless inflation falls:
- “It might take a little longer before they can lower rates”
- The Fed is in no hurry
- Cutting rates too early would be “painful” and likely cause a recession.
Also added:
- the likelihood of a rate hike is “very, very low” (referring to the view that inflation will not fall anytime soon)
—
I don’t know if a rate cut is likely to cause a recession. I suppose someone could make a convoluted argument, but not me.
Pinto’s boss also spoke on Tuesday:
- JPMorgan CEO Dimon: Stagflation May Happen Again
This article was written by Eamonn Sheridan at www.forexlive.com.
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