JP Morgan's Pinto says Fed to hike towards 5.5%, see a US recession

JPMorgan'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 Liquidity Liquidity refers to the extent of a financial instrument’s ability to be bought or sold without causing price fluctuations. Thus, if an asset is extremely liquid, it means one can trade that asset in the knowledge that one’s specific dealing won’t create significant movements in the market.This is because there exists such a large number of traders going both long and short, generating huge volume for that particular asset. Liquidity in the FX MarketTake the example of the foreign exchange marke Liquidity refers to the extent of a financial instrument’s ability to be bought or sold without causing price fluctuations. Thus, if an asset is extremely liquid, it means one can trade that asset in the knowledge that one’s specific dealing won’t create significant movements in the market.This is because there exists such a large number of traders going both long and short, generating huge volume for that particular asset. Liquidity in the FX MarketTake the example of the foreign exchange marke Read this Term, 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 Federal Reserve The Federal Reserve System, more commonly known as the Fed, represents the central banking system of the United States. Like other central banks globally, the Fed is responsible for monetary policy, in this case in the US.The Fed is one of the most watched and followed entities for forex traders, given its material impact on the US dollar. Founded initially in 1913, the Fed was created to perform a wide range of functions. This includes stabilizing and maintaining flexible monetary policy in the The Federal Reserve System, more commonly known as the Fed, represents the central banking system of the United States. Like other central banks globally, the Fed is responsible for monetary policy, in this case in the US.The Fed is one of the most watched and followed entities for forex traders, given its material impact on the US dollar. Founded initially in 1913, the Fed was created to perform a wide range of functions. This includes stabilizing and maintaining flexible monetary policy in the Read this Term:

• 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: