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 Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term 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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ICYMI;

• Weekend - Japan PM Kishida once again says will have 'discussions' with new BOJ governor
• Monday's economic calendar in Asia is light, & Japanese markets are closed for a holiday.