"Challenges of High Interest Rates for JPMorgan Chase & Co."

JPMorgan Chase, Wells Fargo, and Citigroup reported a drop in net interest income in the first quarter, indicating that even the largest banks are grappling with challenges posed by high interest rates. Deposit margin compression and higher deposit balances were cited as reasons for the decline. Despite this, the big banks are still expected to earn substantial profits from lending. JPMorgan's stock dropped over 5% in response to the news, while overall profits for the bank were up 6% from a year ago. Both Wells Fargo and Citigroup also disclosed increased costs for their deposits, with Citigroup undergoing a significant restructuring resulting in thousands of job losses. JPMorgan's CEO, Jamie Dimon, expressed caution about the future economic outlook, citing geopolitical tensions, inflationary pressures, and potential quantitative tightening from the Federal Reserve.