CA - BMO CEO sees inflation 'pivot point' in mid-2023

BMO Capital Markets ( NYSE: BMO ) CEO Daryll White said Thursday that, while he remains cautious about the next several months, he expects an inflation "pivot point" in the middle of the year that will lead to an improved economic outlook.

Speaking to CNBC, White argued that the moderation of inflation will begin to look more substantial later in the year, as the numbers begin to lap the peak annual inflation numbers recorded in the middle of 2022. Meanwhile, he sees an inflation rate of 3% by the end of 2023, roughly in-line with long-term U.S. averages.

"I will say I'm medium-term bullish and I'm bullish on North America," White said, summarizing his outlook for the end of 2023.

Still, the BMO CEO remains cautious on markets in the near term given weak data on retail sales, industrial production and news of more corporate job cuts. He added that next three to four months will be "critical" amid higher interest rates and the ongoing battle against inflation.

Looking at Thursday's intraday action, the S&P 500 ( SP500 ) ( SPY ) was -0.7% , adding to a sharp decline seen the day before. Worries about a slowing economy in the face of still-rising interest rates have put pressure on the market in recent days, causing investors to trim some of the gains they've seen so far in 2023.

For another view on the overall market, see why Seeking Alpha contributor Valuentum says, " We're bullish. With a long-enough time horizon ."

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