Wall Street Bonuses Could Drop 16% in 2023 as Rate Hikes Slow Financial Firms

Wall Street bonuses could fall 16% this year as higher interest rates threaten financial companies' performance.

The drop would be less sharp than last year’s 26% decline that shrank bonuses to $176,700 on average.

The Fed is nearing the end of its tightening cycle, though 2024 rate cuts are expected to be fewer as it aims for 2% inflation.

Securities firms in NYC are on pace to add 4,300 jobs in 2023, climbing 2% from last year to the highest in over 20 years.

Banking heavyweights like Goldman Sachs and Morgan Stanley announced layoffs this year as they cut costs.