JPMorgan is expecting an economic downturn, one of several big banks that are warning of a moderate recession later this year.

Big Banks Warn of Mild Recession

Jpmorgan preparing for an economic downturn. That's not the rosiest of predictions, but it's not necessarily a new prediction. So the bank earmarking $1.4 billion as it predicts a mild recession is the central case. An economist at Jpmorgan see happening in the fourth quarter of this year. We'll see Jamie Diamond noting that the economy is strong but did acknowledge uncertainties like the war in Ukraine and inflation as well as the feds aggressive rate hikes meant to combat higher prices. Well, you might remember diamond shaking markets last year when he did forecast an economic hurricane in the U. S. Due to those continued rate rises hasn't entirely panned out just yet, but Jpmorgan clearly kicking the can down the road here, it is the biggest bank in the country by assets and Diamond himself as a leader in the industry. So any comments and results from this bank are always watched closely, But for the actual finances and results of these earnings, Jpmorgan did top estimates in the quarter. Uh the stacks of 2.6% outperforming the broader market net interest income skyrocketed. That probably sounds like a very wonky and confusing term, basically one of the ways that big banks makes make money is by the money that they lend out right? Think about all those fees, all those loans that they issue. Um And higher rates have led banks like Jpmorgan to actually see more profits in that division elsewhere. Bank of America echoing Jpmorgan's predictions for a recession as Ceo brian Moynihan saying the bank is ready for a recession this year, adding that it sees unemployment topping 5% and staying that high through the end of next year. Right now is at 3.7% and the company did beat estimates in its latest quarter. The stock is up 2% today, also set aside more than a billion dollars in provision for credit losses.