What’s Behind a Red-Hot Quarter for Bank Earnings

July 14, 2026

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Inflation cooled more than expected in June, and America’s biggest banks posted a stunning $49 billion in collective quarterly profits. But both developments came with clear caveats: the reprieve on prices may be temporary, and bank executives warned that the good times are unlikely to last indefinitely.

Inflation Eases, but the Relief May Be Fleeting

Consumer prices rose 3.5% in June from a year earlier, a sharper cooldown than analysts had forecast and a meaningful improvement from May’s 4.2% annual reading. Much of the improvement came from lower gas prices, which fell in tandem with a de-escalation of the war with Iran. But the slowdown was broad: consumers saw outright price decreases in car insurance, hotels, and cell phone plans. Even excluding volatile food and energy costs, inflation was essentially flat month over month in June.

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What you'll learn

1 (00:33) **Inflation Cools More Than Expected** - June CPI rose 3.5% year-over-year, down from 4.2% in May, beating analyst expectations.
2 (03:00) **Big Banks Post a Record $49 Billion Profit Quarter** - JPMorgan, Goldman Sachs, Bank of America, Citi, and Wells Fargo report a 39% profit surge.
3 (04:01) **Consumer Resilience and Lingering Risks** - Bank results show strong consumer spending and improving loan delinquencies across income levels.
4 (05:21) **Trump Reverses Course on Strait of Hormuz Shipping Fee** - President Trump backs down from a 20% fee, opting for trade and investment deals instead.
5 (06:25) **Market Close: Banks Lead Rally, IBM Crashes** - Major indexes mostly rose, led by the Nasdaq (+0.9%), while the Dow was flat.
6 (07:38) **Supreme Court Justices Testify Before Congress for First Time in 7 Years** - Justices Kagan and Barrett appeared to discuss the court's budget request.
7 (08:24) **ICE Suspends Traffic Stops After Fatal Shooting** - The decision follows a second fatal shooting by an immigration officer during a traffic stop in Maine.

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Guests on this episode

Matt Grossman

Show Notes

P.M. Edition for July 14. Big U.S. banks like JPMorgan Chase, Goldman Sachs, and Bank of America reported soaring profits in the second quarter. But can the party continue? We hear from Gina Heeb, who covers banks for the Journal. Plus, inflation cooled to 3.5% last month. WSJ economics reporter Matt Grossman talks about what’s driving prices lower, and what’s expected later this summer. And ICE is suspending traffic stops after two fatal shootings in the past week. Alex Ossola hosts.

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