The Federal Reserve may not cut interest rates at all this year with inflation remaining high, JPMorgan Chase, $JPM, President Daniel Pinto has said

The Federal Reserve may not cut interest rates at all this year with inflation remaining high, JPMorgan Chase, $JPM, President Daniel Pinto has said.

"It might be a while before they can reduce rates," Pinto stated at a Semafor event in Washington, noting that the chances of a rate hike are "very, very low" given the widespread doubt that inflation will ease soon. He emphasized that the Fed is not rushing, as an early rate cut would be "painful" and likely lead to a recession.

Recent economic indicators show that inflation remains stubbornly high in the US, which reduces the likelihood of the Federal Reserve quickly lowering rates. This situation keeps financing costs elevated for an extended period, while a robust job market and overall economic growth support the US economy.

Pinto's remarks echo those of his superior, longtime JPMorgan chief Jamie Dimon. In a letter to shareholders earlier this month, Dimon wrote that persistent inflation pressures could result in higher rates than the market anticipates, and that his firm is prepared for rates ranging from 2% to 8% "or even more."

Earlier on Thursday, yields on two-year US Treasuries rose after John Williams, president of the New York Fed, mentioned the potential for rate hikes at the same event.

Pinto also discussed JPMorgan's recent acquisition of First Republic Bank, a regional lender that faced difficulties last year. While the acquisition was a positive step for JPMorgan and helped stabilize the financial system, he stated that the Wall Street bank does not plan to acquire more small banks during normal periods.

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