Solid profits at banks as execs debate US economic risks [Video]

Large American banks reported solid earnings Friday behind still-high interest rates while offering varying views on the likelihood the United States can avoid a near-term recession.

JPMorgan Chase reported higher profits, citing increased asset management and investment banking fees as well as the lift from lofty interest rates, while Citigroup and Wells Fargo reported dipping profits on higher costs.

Compared with a year ago, the banks have seen some uptick in write-offs for bad loans, reflecting the weaker profile of low-income consumers. However, bankers still point to a healthy American employment market and a lingering boost from pandemic-era government spending.

Officials such as Federal Reserve Chair Jerome Powell have pointed to the chance the US economycan achieve a “soft landing” — shifting relatively painlessly from a …