US banks celebrate record profits thanks to Trump's economic policies!

US banks celebrate record profits thanks to Trump's economic policies!

The largest banks in the US are enjoying notable profits, primarily due to the economic conditions during the Trump administration. Loud it-boltwise.de The six largest banks made a total profit of about $39 billion in the second quarter of this year. This represents an increase of more than 20% compared to last year and exceeds analysts' expectations.

JPMorgan Chase, the country's largest and most profitable bank, played a prominent role with nearly $15 billion in profits. The driver of this success is the flourishing investment banking, which is benefiting from an increase in mergers, IPOs and the issuance of bonds and shares. Investment banking revenue rose 7%, bringing in $450 million more than expected.

Market reactions and investor confidence

Despite initial turbulence at the start of the quarter caused by the so-called “Liberation Day” tariffs, markets recovered surprisingly quickly. The postponement of the toughest tariffs on most trading partners contributed to stabilization and investor confidence. These positive developments also led to an increase in acquisitions and borrowings, while JPMorgan reported loan growth of 5% year-on-year, driven primarily by rising credit card and wholesale loans.

JPMorgan CFO Jeremy Barnum stressed that the corporate world has accepted the uncertainties and is ready to move forward with transactions. The bank's internal economic indicators show a slowdown compared to the first quarter, reducing the risks of a recession and a rise in unemployment. CEO Jamie Dimon expressed optimism about the economy's resilience, while identifying deregulation under the Trump administration as a positive factor.

Political developments and their effects

In addition to the financial developments, JPMorgan Chase has also set up a "war room" to analyze President Trump's new policies. Mary Callahan Erdoes, the head of asset management at JPMorgan, reported that her team spent the last 24 hours assessing the impact of Trump's policies on the economy. Trump recently issued a series of executive orders, including declaring a national energy emergency and a regulatory pause, suggesting less stringent regulation.

Bank of America, the country's second-largest bank, is also pursuing the new policy measures. CEO Brian Moynihan expressed concern about the potential impact of tariffs being considered on imports from Mexico and Canada, but he believes lower tariffs will not have a major impact on the economy or inflation.

The Federal Reserve will need to consider the possible inflationary effects of tariffs in the context of new fiscal policies. Wells Fargo and Citigroup are also showing signs of recovery; Wells Fargo has overcome a Federal Reserve restriction and rewarded employees with a bonus, while Citigroup has seen shares rise nearly 30% this year on investor confidence in CEO Jane Fraser's turnaround plan.