Big banks kick off earnings season amid recession worries, stubborn inflation

Big banks like JPMorgan Chase kick off earnings season on Friday, with investors watching closely for signs of consumer stress and recession signals.

Persistent inflation and economic resilience have forced expectations of fewer Fed rate cuts this year. Traders now see just a 19% chance of a June cut.

Elevated rates help bank profits but could also add stress. JPMorgan's Jamie Dimon warns recession risks remain high.

March inflation accelerated to a 40-year high of 8.5% as gas and housing costs surged, forcing Americans to keep battling high prices.

Fed minutes show officials expect inflation to slow through 2022 but some still worry it could stay stubbornly high, keeping rates elevated.