In so many regards, the fate of the US economy remains in limbo. Across the country, countless Americans are wondering what comes next for the country and whether inflation is going to get even worse or eventually die down.
Businesses nationwide are implementing various surcharges as a means of offsetting inflation. Meanwhile, debates rage on about whether the country should expect to enter a recession next year.
Economists are warning a recession is very much likely; yet, the Federal Reserve claims this isn’t something the American public should be all that worried about.
These days, just about any positive news about the country’s economy would be welcomed. This is what makes some new updates about Bank of America’s latest quarterly profits so hopeful, as reported by Fox Business.
What to Know About Bank of America’s First Quarter Profits
In the first quarter that concluded last month, Bank of America confirmed a 9% surge in customer banking earnings, totaling $8.8 billion over the entire quarter. This news is especially positive, seeing as it goes beyond previous estimates and arrives in spite of market complications.
However, the news about Bank of America’s first-quarter profits isn’t all good. During the recently concluded quarter, the bank’s fees earned from various investments only came out to $1.5 billion. This marks a 35% decline.
Nevertheless, the overall growth coming from the first quarter marks a turn from the previous pattern of delayed deal-making around the world.
Going forward, time will tell what comes of Bank of America’s second-quarter profits and beyond. Given all that’s happening with the US economy today, reliable predictions may be harder to construct than they’ve been during previous times.
Profits For Everyday Americans
While Bank of America’s first-quarter profits certainly provide a level of insight into the economy, it doesn’t mean everyday people aren’t still struggling.
To this day, the current 8.5% inflation rate is eating the profits of everyday Americans. Salaries aren’t even in the realm of being able to offset inflation costs. Businesses also aren’t in the best position to give employees raises, as they themselves have to offset various price hikes caused by inflation.
The Federal Reserve moved up interest rates last month in an effort to restore stability to the nation’s economy. However, the impacts of this decision are still being debated.
Some economists say that a move like this by the central bank could lead to an outright recession later down the line. The Federal Reserve, on the other hand, says it can get the US economy back into shape without causing a recession.
Time will tell.