(Updates with quotes and detail)
By Nupur Anand
NEW YORK, March 8 (Reuters) - Citigroup Inc Chief
Financial Officer Mark Mason told investors on Wednesday he
expected the Federal Reserve to stay committed to its fight
against inflation, paving the way for higher U.S. interest rates
and a "mild recession" in the latter half of this year.
"The Fed is going to be very resolute about continuing to
adjust rates in order to bring inflation down to 2%," Mason
said.
The assessment came after Fed Chair Jerome Powell reaffirmed
his message of higher and potentially faster interest rate
hikes, but emphasized that debate was still underway with a
decision hinging on data to be issued before the U.S. central
bank's policy meeting in two weeks.
Consumer finances remain generally healthy, but rising
inflation and slowing economic activity have weighed on some
households, Mason said. Customers with lower credit scores are
starting to make more late payments on their credit cards, and
that will probably lead to more losses for the bank, he said.
The slowdown in dealmaking will persist for Citi and its
Wall Street peers, with investment banking fees likely to
decline about 40% this quarter, he said.
Citi's trading volumes are expected to slide by "high single
digits" in the first quarter, compared with a strong year-ago
quarter, when the outbreak of war in Ukraine roiled financial
markets and led to a surge in activity.
The bank reported a 21% decline in fourth-quarter earnings
as it set aside more money to prepare for loan losses in a
worsening economy.
Despite the economic uncertainty, Mason reiterated comments
signaling Citi's revenue would rise to about $78 billion to $79
billion this year, from $75 billion in 2022.
(Reporting by Nupur Anand and Lananh Nguyen; Editing by Leslie
Adler and Richard Chang)
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