Large US banks say consumer finances are healthy despite tariffs

By Nupur Anand, Saeed Azhar and Tatiana Bautzer

New York, – US banking giants, US President Donald Trump’s tariff policies, even after taking part in the markets, consumers stayed in good condition, but managers warned the next potential weakness.

“The consumer looks basically good, JP JPMorgan CFO Jeremy Barnum said in his call with analysts. The bank allocated $ 2.85 billion for credit losses in the second quarter, and about 6.5% less than the previous year.

JPMorgan Chase, Citigroup and Wells Fargo released the second quarter profits that defeated analysts and helped with a rebound on the production of agreement and flexible consumer expenditures.

“Consumers and businesses remain strong as unemployment remains low and inflation is under control, credit card expenditure growth is softened in the second quarter, but rose from year to year.” He said.

Automobile loans and higher reimbursements on credit cards pushed Wells Fargo to reduce their accusations or unlikely to be saved. The bank also reduced the amount of money allocated to meet potential loan losses.

Nevertheless, managers expressed their concerns about how consumers will ventilate the impact of higher tariffs on imported goods.

The consumer price index showed that the US consumer prices increased in June in June and that tariffs began to have an impact on inflation. In line with expectations, it increased by 0.3% last month.

Mark Mason, Chief Director of Finance, told journalists to soften the expenditures of Citigroup in the second half of the year.

“Consumer health continues to be very strong,” he said. He continued: “We expect more consumer to cool in the second half … Tariff effects are playing.”

The credit costs of the bank rose to $ 2.9 billion in the second quarter, especially from net credit losses especially on US credit cards.

This article was created from an automatic news agency feeding without changing the text.