For now, the Fed’s March reversal and a flat -- and at times inverted -- yield curve is the more pressing concern. Wells Fargo said net interest income could fall as much as 5 percent this year, while Bank of America sees it growing at half of 2018’s pace.
Still, JPMorgan, which stuck with its outlook for net interest income to climb to more than $58 billion in 2019, sees a silver lining in the Fed’s pause: less pressure to raise rates for its $1.5 trillion deposit base.
“While we may not have a tailwind of higher rates, we also may not have the same kinds of pressures that we would see on bases necessarily,” JPMorgan CFO Marianne Lake said Friday.
This article provided by Bloomberg News.