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NEW YORK—Wall Street’s major banks and asset managers were cautious about the economy as they detailed how both consumers and institutional clients were struggling to deal with sky-high inflation and looming rate hikes. The big banks are reporting results at a time of surging inflation, which is leading to predictions that the Federal Reserve will hike interest rates aggressively this year. While that can benefit big lenders by increasing what they earn from loans, rapid rate hikes could slow the economy and scupper a nascent recovery from the pandemic. “Higher rates are typically a positive for banks,” said Jason Ware, chief investment officer for Albion Financial Group, which holds JPMorgan shares. “But if borrowers are unable to absorb higher borrowing costs it is an offsetting benefit. There could be a headwind if they rise too much.” ...

Source: https://www.theepochtimes.com/inflation ... 06323.html