Here's What Big Bank CEOs Said About the US Economy Today
Key Takeaways
- CEOs at banks from JPMorgan to Goldman Sachs were broadly positive about the U.S. economy today, touting the prospects of more deals and the expectations of lighter-touch regulations under the next Trump administration.
- The economic risks they mentioned included the prospect of resurgent inflation, intensifying geopolitical tensions and a general “uncertainty” regarding everything from immigration to trade policies.
- JPMorgan Chase CEO Jamie Dimon, Goldman Sachs CEO David Solomon and Wells Fargo CEO Charlie Scharf all noted the strong U.S. economy after posting higher-than-estimated fourth-quarter results.
Big bank earnings season is underway, with America’s large lenders reporting results topping expectations just a few days before Donald Trump regains the White House.
The latest round of numbers landed this morning, led by JPMorgan Chase (JPM), Goldman Sachs (GS) and other financial institutions. In comments today, bank execs were broadly bullish about the U.S. economy, touting a rosy outlook for M&A volume growth and the expectation of lighter-touch regulations under the next administration.
But they also cited risks, including the prospect of stubborn or resurgent inflation and intensifying geopolitical tension as well as a general “uncertainty” regarding everything from immigration to trade policies.
Comments Came From the Heads of Goldman, JPMorgan and Wells Fargo
JPMorgan CEO Jamie Dimon praised the incoming administration’s “progrowth agenda,” citing the country’s low unemployment and “healthy” end-of-year consumer spending with overall business optimism.
However, he also pointed to the risks of inflation and rising geopolitical tensions.
Goldman Sachs Chairman and CEO David Solomon discussed “an improving operating backdrop and growing CEO confidence” in a press release detailing earnings that beat estimates,
Yet, while the U.S. economy remains “constructive” and people are excited about the prospects for a “lower regulatory touch environment…at the moment, there’s uncertainty,” Solomon noted in a transcript of the earnings call made available from AlphaSense.
“When you look broadly across immigration policy, trade policy, tax policy, energy policy, we’ll get more clarity around all of this, but there are different outcomes,” said Solomon.
Wells Fargo (WFC) CEO Charlie Scharf was optimistic about the economy and the prospects for lighter regulation after the bank posted net interest income that topped analysts’ estimates.
“The U.S. economy has performed very well and remains strong, and lower inflation and unemployment position the economy well into 2025,” he said during the company’s conference call.
Asked by an analyst about the risks to that projection Scharf said “anything that risks” the strength of the U.S. economy is a risk for the bank.
More banks are expected to report results tomorrow, including Morgan Stanley (MS) and Bank of America (BAC).