fourth-quarter profit as rate hikes helped it charge more interest on loans to customers.
Earnings from big banks were viewed as a major test of the strength of corporate America in the backdrop of sharp interest rate hikes from the Federal Reserve to curb decades-high inflation.fell for the first time in more than 2-1/2 years last month, fueling hopes for a sustained downward trend in inflation that could give the Fed room to scale down the size of its rate hikes.
Money market participants see a 90.6% chance the Fed will hike the benchmark rate by 25 basis points in February, but see the terminal rate at 4.9% by June after the December inflation print. Hopes of a less hawkish monetary policy stance by the Federal Reserve have supported equities in 2023, with the tech-heavy Nasdaq