US Banks' $1 Trillion Windfall, CFOs' Election Predictions, And More: This Week In Economics
The past week has been a rollercoaster ride in the world of finance and economics. From U.S. banks reaping a massive windfall due to high interest rates to CFOs predicting the outcome of the upcoming presidential election and a leading Chinese economist going missing, there’s a lot to catch up on.
Here’s a quick round-up of the top stories.
US Banks Reap $1 Trillion Windfall
Major U.S. banks, including JPMorgan and Bank of America, have reportedly gained a $1 trillion windfall due to the Federal Reserve's prolonged period of high interest rates. The Fed maintained elevated interest rates for two and a half years, allowing banks to earn higher yields on deposits held at the Fed. However, many banks did not pass these higher rates on to their savers, resulting in $1.1 trillion in excess interest revenue.
CFOs Predict Harris Victory In Presidential Election
In a recent survey, a majority of chief financial officers predict that Vice President Kamala Harris will win the upcoming presidential election, despite believing that Donald Trump would be better for the economy. The third-quarter CNBC CFO Council Survey reveals that 55% of CFOs expect Harris to prevail in the election, marking a notable shift from the previous quarter.
Ex-Obama Adviser Warns Of Threats To Fed’s Independence
Jason Furman, a key figure in former President Barack Obama's administration, has warned about potential threats to the Federal Reserve's independence under a possible second term of Republican presidential candidate Donald Trump. Furman argues that Trump's campaign promises could create inflationary pressures, forcing the Fed to raise interest rates.
Leading Chinese Economist Goes Missing
Zhu Hengpeng, a leading economist in China, has vanished following critical comments about President Xi Jinping‘s economic policies. Zhu, deputy director at the Chinese Academy of Social Sciences (CASS), was detained after allegedly criticizing Xi in a private WeChat group.
Chinese Stocks Soar Following Major Stimulus
Chinese stocks, including Alibaba Group Holding Ltd, soared earlier this week following an unexpected and substantial monetary stimulus from the People's Bank of China (PBoC). The central bank announced cuts to the reserve requirement ratio (RRR) for banks and the seven-day repo rate, just a day after lowering the 14-day reverse repo rate.
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This story was generated using Benzinga Neuro and edited by Ananya Gairola
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Posted-In: Ananya Gairola Bank of America Barack Obama Donald Trump Jason FurmanNews Economics Media
