FED will raise the interest rate to 5.5%

Jane Fraser: Fed likely to raise interest rate in May

CEO Citigroup predicted that the FED will raise the interest rate by 5.5% by May this year and maintain them at this level until the end of the year.

At the Federal Market Opening Committee (FOMC) last December. the Fed proposed a final median rate of 5.1%, which predicted a more intense tightening.

She predicted that the US would enter a moderate recession later this year. She also analyzed that the stagnation in corporate activity would be a headwind for the investment banking business. But the expansion of household consumption would be a boon for commercial banks.

She pointed out that inflation, which plagues the economy, appears to have peaked, but rising service prices continue to hurt.

Regarding the stability of the financial system, she emphasized that the entire banking sector has sufficient capital and durability. And that the situation is much better than in 2008 when the Lehman bankruptcy occurred.

Regarding the Russian market, where Citibank announced its withdrawal, it announced a plan to end most of its banking business to corporations by the end of March this year, in addition to selling loans to individual businesses.

She also evaluated that the need for regulation has emerged about the FTX bankruptcy that hit the cryptocurrency market.

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