Major US Banks See Higher Profits from Rising Rates but Caution Ahead as Consumer and Economic Growth Slows

Major US banks like JPMorgan, Citi, and Wells Fargo reported higher interest income and profits as rates rose, but saw signs of slowing loan growth and more caution from consumers.

Banks said the economy was slowing, with consumers spending down excess savings and being more careful about taking on debt.

Loan delinquencies rose at some banks, indicating potential issues ahead, though overall credit quality remains decent for now.

Higher interest income boosted results, but banks don't expect the high levels to continue as competition heats up.

Bank stocks surged on the better-than-feared results and outlook, with investors seeing pessimism overdone.