JP Morgan’s Pinto doubts the Federal Reserve will be cutting rates this year

Daniel Pinto is President and Chief Operating Officer of JPMorgan.

He spoke at an event in Washington DC, saying that the Federal Open Market Committee (FOMC) won’t be cutting rates this year unless inflation falls:

• “It may take a bit longer until they can cut rates”
• Fed isn’t in any hurry
• A rate cut that comes too early would be “painful” and probably cause a recession

Added too:

• likelihood of a rate hike is “very, very low” (referring to views that inflation will not be falling any time soon)

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I don’t know about a rate cut as likely to cause a recession. I guess someone could make a convoluted argument for it, but not me.

Pinto’s boss spoke on Tuesday also:

• JPMorgan CEO Dimon: There is a chance stagflation could happen again

This article was written by Eamonn Sheridan at www.forexlive.com.