The biggest concern is that lower interest rates will slow down Wall Street’s decade-long profit party. The Federal Reserve cut interest rates three times in 2019, each time by a quarter of a percentage point. The improved results at JPMorgan and Citigroup were partly attributed to a surge in trading revenue. The biggest challenge could be lower interest rates, as the Fed has signaled it intends to keep rates steady for the foreseeable future. “Lower interest rates make it a lot harder to grow profits from here,” said Kyle Sanders, an analyst with Edward Jones who covers Wells Fargo.

Source: The Standard January 15, 2020 10:13 UTC