Latest news with #JaneFraser
Bloomberg
a day ago
- Business
- Bloomberg
Wall Street Signals Stablecoin Fightback as Crypto Bills Advance
In a rare public embrace of the once-shunned world of crypto, the heads of America's largest banks made one thing clear this week: stablecoins are no longer at the fringe of finance. On earnings calls, JPMorgan 's Jamie Dimon, Bank of America 's Brian Moynihan and Citigroup 's Jane Fraser each described the upstart 'digital dollar' as a potential threat to the banking industry's grip on payments — and signaled they're preparing to respond.
Yahoo
a day ago
- Business
- Yahoo
Wall Street is coming to the Fed's defense
Some of the biggest names on Wall Street are getting louder about the importance of an independent Federal Reserve as the White House pressure on Jerome Powell intensifies. JPMorgan Chase (JPM) CEO Jamie Dimon, Bank of America (BAC) CEO Brian Moynihan, Citigroup (C) CEO Jane Fraser and Goldman Sachs (GS) CEO David Solomon all offering separate arguments this week about why it was so critical to financial markets for the central bank to operate autonomously. "Fed independence is very important, and it's something we should fight to preserve,' Solomon told CNBC Wednesday. The stability of the US 'is actually necessary and important to the whole world,' Moynihan added in a separate interview with CNBC Wednesday, and 'I think a stable Fed, an independent Fed, is key to that.' 'In a year, we'll have a new Fed chair, because that's the right of the president," he added, referring to the fact that Powell's term expires next May. "But I think if… the market would really look at a change prematurely as being something very different." Investors did in fact react negatively on Wednesday to multiple reports that Trump was close to firing Powell, with longer-term Treasury yields rising and the dollar dropping, before Trump told reporters that he was "not planning" to fire Powell. Trump left the door open to that possibility, however. "I don't rule out anything, but I think it's highly unlikely, unless he has to leave for fraud," he said. Citigroup's Fraser was among the other big bank executives to make her views known publicly this week. In a statement shared with Yahoo Finance, she said that 'the independence of the Federal Reserve drives its credibility. It is critical to the effectiveness of our capital markets and U.S. competitiveness.' But the CEO who first weighed in this week was JPMorgan's Dimon, someone with a lot of sway on Wall Street and in Washington. Trump in April acknowledged listening to Dimon before pulling back on his "Liberation Day" tariffs, which triggered widespread market chaos. Dimon told reporters Tuesday that the independence of the Federal Reserve is "absolutely critical" for Powell and whoever succeeds him as chairman of the central bank. "Playing around with the Fed can often have adverse consequences," Dimon said after JPMorgan reported its first quarter earnings, adding that it can produce "the absolute opposite of what may be hoping for." David Hollerith is a senior reporter for Yahoo Finance covering banking, crypto, and other areas in finance. His email is Click here for in-depth analysis of the latest stock market news and events moving stock prices Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
Jim Cramer Says Citigroup Will Get Praised Regardless
Citigroup Inc. (NYSE:C) is one of the stocks that Jim Cramer shared insights on. While discussing the company during the episode, Cramer noted: 'One thing's for certain, it doesn't matter what CEO Jane Fraser says at Citigroup, everyone's going to raise price targets and praise the bank anyway.' A banker closely examining a document while seated at his desk. Citigroup (NYSE:C) delivers financial products and services, including investment banking, trading, wealth and personal banking, treasury and securities solutions, serving institutional, corporate, government, and consumer clients across global markets. During an April episode, when a caller inquired about the company stock, Cramer recommended buying despite Citigroup (NYSE:C) not being his favorite stock. 'I want you to buy Citi. It's not my favorite. You're absolutely right. I sold Wells, just one more consent decree knocked down. Capital One is my absolute favorite. I think you should buy that aggressively, but I like your idea.' While we acknowledge the potential of C as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.
Wall Street Journal
2 days ago
- Business
- Wall Street Journal
Bank CEOs Are Coming Out Fighting for Fed Independence
The nation's biggest bankers are speaking out to defend the independence of the Federal Reserve while President Trump openly discusses ousting Chair Jerome Powell. Goldman Sachs Chief Executive David Solomon, Bank of America head Brian Moynihan and Citigroup's Jane Fraser said on Wednesday the central bank's ability to operate without White House or political interference is critical to the U.S. economy and financial markets. They followed JPMorgan Chase CEO Jamie Dimon, who said the same thing on Tuesday.
Yahoo
2 days ago
- Business
- Yahoo
Wall Street CEOs see some tariff impact filtering into customer behavior
By Carolina Mandl NEW YORK (Reuters) -Some top executives at Wall Street banks have been showing concern about higher inflation and potential deterioration of the U.S. economy as tariffs take effect, noting there has been more cautious behavior from corporate clients. "We have seen pauses in capex and hiring amongst our client base," Citigroup's Jane Fraser told analysts on Tuesday. "All of that said, the strength of the U.S. economy driven by the American entrepreneur and a healthy consumer has certainly been exceeding expectations of late." The bank expects consumer spending to cool in the second half if a spike in prices occurs. Wells Fargo CEO Charles Scharf said he has met with some commercial banking clients and described how they are navigating the new environment. "Many have found ways to avoid passing the 10% tariffs on to their customers," Scharf said. "At the same time, they are preparing for the downside and are not growing inventories or hiring aggressively and developing contingency plans if the downside scenario occurs", he told analysts. Scharf also expressed concern about financial assets. "We should recognize there is risk to the downside as the markets seem to have priced in successful outcomes." All six of the biggest U.S. banks - JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley - beat analysts' profit expectations in the latest quarter, helped by the financial health of consumers and businesses, as well as busy trading desks. Still, while CEOs touted the resilience of the world's largest economy, some described cautionary measures companies are taking due to uncertainty around tariffs. U.S. stocks plummeted after President Donald Trump unveiled tariff rates on April 2. They have since recovered, with both the S&P 500 and the Nasdaq Composite hitting all-time highs on June 27 and new records since then. Still, U.S. companies have navigated an uncertain environment. Trump has paused some tariffs while trade partners negotiate a deal, adding more unpredictability to business. Following "Liberation Day," global brokerages saw a greater chance of a recession this year, with JPMorgan calculating a 60% probability. Major firms later trimmed their gloomy outlook. JPMorgan sees the recession probability now at 40%. Many executives said their main concern is how consumers will react if goods prices surge because of tariffs. Rising prices pulled inflation higher in June. On Tuesday, economists viewed the latest Consumer Price Index as evidence that Trump's rising import taxes were passing through to consumers. It increased 0.3% last month, the most in five months, in line with expectations. Yields on the 30-year Treasury hit a six-week high after the inflation data on Tuesday. The S&P 500 stock index ended lower. Jamie Dimon, CEO of JPMorgan Chase, on Tuesday maintained a cautious stance on the U.S. economy, saying "significant risks persist," while recognizing its resilience. Goldman Sachs CEO David Solomon highlighted the amount of uncertainty going ahead. "Geopolitical concerns have intensified in many regions, but notably in the Middle East, a number of trade agreements have yet to materialize, and that the ultimate impact on growth from higher tariffs is yet unknown," he told analysts on Wednesday. Overall, top executives said they expect the dealmaking pipeline to pick up in the second half of the year, as business owners get more comfortable with the new tariff environment. Most banks reaped gains from an M&A rebound in the second quarter already. "Corporations are looking past tariffs to lead their companies through strategic movements and growth," Morgan Stanley's Chief Financial Officer Sharon Yeshaya said. Sign in to access your portfolio
