Despite everything, Americans’ finances are still sturdy. At least that’s the view of people’s wallets from some of the country’s biggest banks as corporate earnings season gets rolling with profit beats.
“We’re trying to be really clear here. The consumer is in good shape,” said JPMorgan Chase & Co.
JPM,
CEO Jamie Dimon, speaking on a Friday earnings call after a second quarter profit beat from the nation’s largest bank. “They’re spending down their excess cash. That’s all tailwinds.”
Dimon added, “even if we go to a recession, they’re going with rather good conditions, low borrowings and good house price values still. But the headwinds are substantial and somewhat unprecedented.”
Over at Wells Fargo
WFC,
CEO Charlie Scharf said “The U.S. economy continues to perform better than many had expected. Although there will likely be continued economic slowing and uncertainty remains, it is quite possible the range of scenarios will narrow over the next few quarters.”
“I’d say we’re seeing a more cautious consumer but not necessarily a recessionary one,” Citi
C,
CEO Jane Fraser said in a Friday earnings call.
There’s reasons to think many Americans would disagree with these upbeat — albeit guarded — assessments on their financial wellbeing.
Consumer debt is rising while the food and rent costs that were pushed higher by inflation in the past two years likely aren’t getting punctured. Many Americans still haven’t tucked away money for emergency savings. And don’t forget, student loan payments are returning in October to stretch the budgets of more than 40 million borrowers.
Both things are true, said Ida Rademacher, vice president at the Aspen Institute and co-executive director of the Aspen Financial Security Program.
“The economy is doing surprisingly well and many people in the economy are doing surprisingly…
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