The optimism over US banks is about to be put to the test

Published On Jan 13, 2025, 4:00 AM

Investors are turning their attention to major US banks as they prepare to release their earnings for the fourth quarter of 2024. After a year of optimism following tax reforms and regulatory changes in the Trump administration, bank stocks have faced uncertainty in the face of rising interest rates and inflation. Although banks like JPMorgan Chase are expected to post record profits for the year, analysts predict a dip in fourth-quarter profits compared to the previous quarter. Market watchers are particularly interested in banks' outlooks for 2025, especially regarding interest rate policies under the new administration. Overall, while there is a bullish sentiment about the prospects for the banking sector, potential risks from inflation and interest rates could temper growth expectations.