US banks warn of recession as inflation hurts consumers; shares fall | The Business Standard
Skip to main content
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Friday
July 11, 2025

Sign In
Subscribe
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
FRIDAY, JULY 11, 2025
US banks warn of recession as inflation hurts consumers; shares fall

Global Economy

Reuters
07 December, 2022, 09:05 pm
Last modified: 07 December, 2022, 09:08 pm

Related News

  • Inflation drops below 9% after 27 months
  • Inflation to drop further next month: Governor
  • Bangladesh's economy showing early signs of stabilisation: Economic outlook by Planning Commission
  • Foreign exchange reserve crosses $21b
  • Advance tax hike risks fuelling inflation: Experts

US banks warn of recession as inflation hurts consumers; shares fall

Reuters
07 December, 2022, 09:05 pm
Last modified: 07 December, 2022, 09:08 pm
A combination file photo shows Wells Fargo, Citigbank, Morgan Stanley, JPMorgan Chase, Bank of America, JPMorgan, and Goldman Sachs from Reuters archive. REUTERS/File Photos
A combination file photo shows Wells Fargo, Citigbank, Morgan Stanley, JPMorgan Chase, Bank of America, JPMorgan, and Goldman Sachs from Reuters archive. REUTERS/File Photos

The biggest US banks are bracing for a worsening economy next year as inflation threatens consumer demand, according to executives Tuesday.

JPMorgan Chase & Co Chief Executive Jamie Dimon told CNBC that consumers and companies are in good shape, but noted that may not last much longer as the economy slows down and inflation erodes consumer spending power.

"Those things might very well derail the economy and cause this mild to hard recession that people are worried about," he said.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

Consumers have $1.5 trillion in excess savings from pandemic stimulus programs, but it may run out some time in mid-2023, he told CNBC. Dimon also said the Federal Reserve may pause for three to six months after raising benchmark interest rates to 5%, but that may "not be sufficient" to curb high inflation.

The US central bank last month raised rates by 75 basis points during its fourth consecutive meeting to 3.75%-4%, but it also signaled hopes to shift to smaller hikes as soon at its next meeting.

Major banks' shares fell sharply on the day after a lineup of top bankers outlined the risks for the economy. Bank of America slid more than 4%; Goldman Sachs Group Inc and Morgan Stanley each fell more than 2% and Citigroup Inc slid more than 1%.

Bank of America CEO Brian Moynihan told investors at a Goldman Sachs financial conference that the bank's research shows "negative growth" in the first part of 2023, but the contraction will be "mild."

The lender's investment-banking fees will probably decline 55% to 60% in the fourth quarter from a year earlier, while trading revenue will likely rise 10% to 15%, Moynihan said.

"Economic growth is slowing," Goldman Sachs CEO David Solomon said at the same conference. "When I talk to our clients, they sound extremely cautious."

In banking, the job market remains "surprisingly tight" and competition for talent is "as tough as ever," he said.

However, some banks are cutting staff. Morgan Stanley has reduced about 2% of its workforce, a source familiar with the company's plans said on Tuesday. The job cuts, first reported by CNBC, affect about 1,600 positions and follow workforce reductions at Goldman and Citigroup.

Elsewhere on Wall Street, the world's largest asset manager BlackRock Inc has frozen hiring except for critical roles, Chief Financial Officer Gary Shedlin said.

"We're trying to be a little more prudent," he said.

World+Biz / USA

US Banks / Recession / inflation

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Kunming rising: China’s emerging healthcare hub draws Bangladeshi patients
    Kunming rising: China’s emerging healthcare hub draws Bangladeshi patients
  • Abul Barkat at Dhaka Metropolitan Magistrate Court on 11 July 2025. Photo: TBS
    Economist Abul Barkat sent to jail in Tk297cr embezzlement case
  • BNP senior leader Salahuddin Ahmed. Photo: Collected
    No scope for electoral alliance with Jamaat, door not closed for NCP: BNP's Salahuddin

MOST VIEWED

  • Photo: Mohammad Minhaj Uddin/TBS
    SSC, equivalent results: Pass rate drops to 68.45%, GPA-5 also declines
  • In terms of stream of education, girls maintained their excellence as well. Photo: TBS
    SSC 2025: Girls dominate boys by over 5%
  • Govt vehicle purchase, foreign trip, new building construction banned: Finance ministry
    Govt vehicle purchase, foreign trip, new building construction banned: Finance ministry
  • Students sit for SSC exam at Motijheel Girls' High School on 10 April 2025. Photo: Mehedi Hasan/TBS
    SSC exam results out: Here's how you can check online and via SMS
  • The overall pass rate across all boards this year, 68.45%, is significantly lower than last year's. Photo: Focus Bangla
    SSC 2025: Rajshahi board records highest pass rate, Barishal lowest
  • Representational image. Photo: Collected
    35% tariff: Bangladesh, US 'agree on most issues' as first day of talks ends

Related News

  • Inflation drops below 9% after 27 months
  • Inflation to drop further next month: Governor
  • Bangladesh's economy showing early signs of stabilisation: Economic outlook by Planning Commission
  • Foreign exchange reserve crosses $21b
  • Advance tax hike risks fuelling inflation: Experts

Features

Kunming rising: China’s emerging healthcare hub draws Bangladeshi patients

Kunming rising: China’s emerging healthcare hub draws Bangladeshi patients

43m | Panorama
Photo: Collected/BBC

What Hitler’s tariff policy misfire can teach the modern world

22h | The Big Picture
Illustration: TBS

Behind closed doors: Why women in Bangladesh stay in abusive marriages

1d | Panorama
Purbachl’s 144-acre Sal forest is an essential part of the area’s biodiversity. Within it, 128 species of plants and 74 species of animals — many of them endangered — have been identified. Photo: Syed Zakir Hossain/TBS

A forest saved: Inside the restoration of Purbachal's last Sal grove

1d | Panorama

More Videos from TBS

Trump-Netanyahu in new strategy on Gaza issue

Trump-Netanyahu in new strategy on Gaza issue

33m | TBS World
Shocking science: why birds stay safe on electricity lines

Shocking science: why birds stay safe on electricity lines

1h | TBS Stories
Threat of 35 percent tariff on Canadian goods

Threat of 35 percent tariff on Canadian goods

2h | TBS World
Israel ready to strike back if Iran threatens: Katz

Israel ready to strike back if Iran threatens: Katz

4h | TBS World
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net