Citi CEO says Federal Reserve to hike to just under 5.5% by May, recession likely in H2 23

Citigroup CEO Jane Fraser in a written interview with Japan’s Nikkei media (may be gated). It was conducted in December but the Nikkei only just published it over the weekend.

Main points:

  • overall U.S. inflation has peaked, services inflation continues to be painfully persistent.”
  • “We see the Fed increasing its terminal rate to just under 5.5% by next May and holding rates at that level through the end of next year”
  • “I think a recession is likely to happen in the U.S. sometime in the second half of 2023”
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