JPMorgan CFO Doesn't Sound Worried About A Recession, Says 'Consumer Is Fine'

Zinger Key Points
  • As of Friday afternoon, Citigroup was the only major bank to be trading in the green.
  • According to JPMorgan Chase CFO Jeremy Barnum, consumer resiliency is high.

JPMorgan Chase & Co JPM reported earnings Friday morning, beating EPS estimates and trading higher before giving up those gains later in the session.

But according to the firm's CFO, Jeremy Barnum, consumer resiliency is high.

What Happened: “The consumer is fine,” Barnum said during the bank's fourth-quarter (Q4) earnings call.

Some economists have worried that high interest rates will cause a downturn in spending and economic growth. But the data shows otherwise.

"All of the relevant metrics are now effectively normalized,” he added.

Barnum does point out, however, that consumers have been spending more money than they’re bringing in, creating potential problems down the road. But Barnum also said that he expects the labor market to remain strong, which would keep consumer credit elevated.

JPMorgan Chase CEO Jamie Dimon had slightly less dovish comments on the overall economy, insisting consumers may run into stickier inflation and higher interest rates for longer than what the Federal Reserve is currently projecting.

Read Also: Jamie Dimon Warns Of Stickier Inflation, Higher-Than-Expected Rates After JPMorgan Notches Up Record Annual Profit: 'Significant...Somewhat Unprecedented Forces Cause Us To Remain Cautious

The Price Action: JPMorgan Chase’s stock opened about 2.5% higher than its close on Thursday. But, amid overall weakness in the financial sector, the stock gave back those gains and traded slightly in the red Friday afternoon. 

Other banking companies, like Bank of America BAC, Citigroup C and Wells Fargo WFC also reported earnings Friday morning. As of Friday afternoon, Citigroup was the only one to be trading in the green. 

Now Read: Is Longtime JPMorgan Chief Jamie Dimon Ready To Retire? Another CEO Sold Shares Prior To Exiting

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Posted In: EarningsNewsTop StoriesGeneralbanksconsumerInflationJamie DimonLarge banksStories That Matter
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