Banks warn tariffs could slow economic growth
Executives emphasize consumer and company caution amid tariff uncertainty
Banks report stock transaction revenue
Authors: Nupur Anand, Saeed Azhar and Tatiana Bautzer
NEW YORK, April 11 (Reuters) – Profits from major U.S. banks beat forecasts in the first quarter as stock trading increases, but executives warned Friday that full-scale tariffs could exacerbate risks and weigh growth.
Equity traders at JPMorgan Chase and Morgan Stanley flourished at the beginning of the year, while Wells Fargo earned more revenue and Wells Fargo received more client fees. But industry executives say consumers and companies are becoming increasingly cautious about the overall tariffs of U.S. President Donald Trump, which have caused markets to surge, could stimulate inflation and put the economy into recession.
“Now notice the storm cloud of tariff uncertainty,” said Peter Torrente, a leader in banking at KPMG. “Now notice of the storm cloud of tariff uncertainty,” said Peter Torrente, a leader of KPMG in the United States. Now, the magnifying glass is hovering over fiscal policy and credit risks. The health of consumers’ financial status is being carefully observed as tariffs may lead to higher lending capacity.
While it’s too early to understand the full impact of tariffs, households and businesses are beginning to respond to import taxation, the largest lender in the United States said.
“You start to see key points for consumers who may become more expensive,” JPMorgan Chief Financial Officer Jeremy Barnum told reporters. Enterprise customers are in a waiting mode because “this level of policy uncertainty is difficult to plan for long-term.”
JPMorgan CEO Jamie Dimon told analysts that companies that will report their performance in the coming weeks may withdraw their earnings forecasts, given the uncertainty.
The latest warnings exacerbated the chorus of Wall Street executives, sounding the alarms to ring potential economic damage from tariffs, including Damon, Blackstone CEO Larry Fink and billionaire fund manager Bill Ackman.
Investors looking to end wild market volatility Thursday’s stock market investment reminds people that changing tariff plans remain a threat to income and the economy.
Corporate and commercial bank clients are “taking a step back and saying ‘You know, I need to be clearer and clearer, where I’m going to go.”
(Reported by Nupur Anand, Saeed Azhar and Tatiana Bautzer in New York, by Lananh Nguyen; Edited by Rod Nickel)
