Jeremy Hunt has urged Britain’s biggest businesses to divert more of their profits from soaring inflation to helping customers during the cost-of-living crisis.
In an attempt to combat surging inflation, the Federal Reserve has implemented its fastest interest rate hikes since the 80s. However, there are potential unintended consequences of swift economic changes raises concerns about severe side effects for banks.
The Fed's "stress test" exercise showed lenders, including JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Morgan Stanley and Goldman Sachs, have enough capital to weather a severe economic slump, paving the way for them to issue share buybacks and dividends. The 23 banks tested, which have more than $100 billion in assets each, would suffer a combined $541 billion in losses under the Fed's severe downturn scenario - one of its toughest yet - but would still have over twice the amount of capital required.