US banks gain $1 trillion from high interest rates

In the past week, significant developments have unfolded in the financial and economic landscape. Major U.S. banks, including JPMorgan and Bank of America, have reported a staggering $1 trillion windfall attributed to the Federal Reserve's sustained high interest rates over the last two and a half years. This situation has allowed banks to earn substantial yields on deposits, although many have not shared these benefits with their customers, resulting in excess interest revenue. In the political arena, a recent survey conducted by CNBC revealed that a majority of chief financial officers anticipate Vice President Kamala Harris will win the upcoming presidential election. Interestingly, despite this prediction, many CFOs believe that Donald Trump would be more beneficial for the economy. This shift in expectations marks a notable change from previous sentiments expressed by financial leaders. Meanwhile, in China, the economic climate has taken a troubling turn with the disappearance of Zhu Hengpeng, a prominent economist who criticized President Xi Jinping's policies. His detention raises concerns about the state of free speech and dissent in China, particularly regarding economic discussions. Additionally, the People's Bank of China has implemented cuts to the reserve requirement ratio and the seven-day repo rate, indicating a response to economic pressures. These actions reflect ongoing efforts to stimulate the economy amid rising challenges, including the potential impact of Zhu's disappearance on public discourse.