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JPMorgan’s Lending Outlook Suffers From Fed’s Rate Reversal

  • Bank lowers net interest income forecast by $500 million
  • Fixed-income desk posts fourth straight quarterly drop
Bloomberg business news
Thomas Michaud, CEO at KBW, and Bloomberg’s Sonali Basak, discuss JPMorgan’s second quarter earnings report.Source: Bloomberg)
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JPMorgan Chase & Co. was hit by the Federal Reserve’s about-face on interest rates in the second quarter, warning that lending income will fall in the second half.

The largest U.S. bank on Tuesday cut its full-year outlook for net interest income -- revenue from customers’ loan payments minus what the bank pays depositors -- by $500 million. NII accounted for about half the New York-based company’s revenue last year and has countered a slump in trading, which fell for a fourth straight period in the second quarter.