The Fed is raising rates, and today’s strong jobs report means Fed will be raising rates 50 basis points if not higher. Now, let us roll forward to 3Q GDP report, assuming,
- gas price going down benefits, 2) retailer inventory right sized 3) most supply chain issues addressed to meet the customer demand (look at where the economy is strong and jobs added)
https://www.cnbc.com/2022/08/05/heres-where-the-jobs-are-for…
Suddenly we have a 3Q GDP which is not going down and 4Q GDP showing positive signs and inflation is coming down, rates are high enough and we dodge recession, so no big credit loss…
Can there be a better scenario for bank earnings???
Yeah they are not exactly falling knives…