U.S. banks’ $1 trillion windfall, CFOs’ election predictions and more: This week in Economics

The past week has been a roller coaster ride in the financial and economic world. From US banks reaping massive profits due to high interest rates to CFOs predicting the outcome of the upcoming presidential election to the disappearance of a leading Chinese economist, there is a lot of catching up to do.

Here’s a quick summary of the top stories.

US banks reap a $1 trillion windfall

Major US banks including JPMorgan And Bank of Americahave reportedly made a profit of $1 trillion due to the Federal Reserve’s ongoing high interest rate phase. The Fed maintained elevated interest rates for two and a half years, allowing banks to earn higher returns on deposits with the Fed. However, many banks did not pass on these higher interest rates to their depositors, resulting in $1.1 trillion in additional interest income.

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CFOs predict Harris victory in presidential election

In a recent survey, a majority of CFOs predicted they would become vice president Kamala Harris will win the upcoming presidential election, even though he believes so Donald Trump would be better for the economy. The CNBC CFO Council third quarter survey shows that 55% of CFOs expect Harris to win the election, a notable change from the previous quarter.

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See also: Mortgage demand rises as Fed rate cut spurs housing market revival: ‘Next spring could see a real rebound’

Ex-Obama adviser warns of threats to Fed’s independence

Jason Furmana key figure of the former president Barack Obama’s The US government has warned of possible threats to the independence of the Federal Reserve in the wake of a possible second term for Republican presidential candidate Donald Trump. Furman argues that Trump’s campaign promises could create inflationary pressures that could force the Fed to raise interest rates.

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Leading Chinese economist missing

Zhu Hengpenga leading economist in China, has disappeared after making critical comments about the president Xi Jinping Economic policy. Zhu, deputy director of the Chinese Academy of Social Sciences (CASS), was arrested after he allegedly criticized Xi in a private WeChat group.

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Chinese stocks rise after big economic stimulus

Chinese stocks, including Alibaba Group Holding Ltdrose earlier this week following an unexpected and significant monetary stimulus from the People’s Bank of China (PBoC). The central bank announced cuts to the reserve requirement ratio (RRR) for banks and the 7-day repo rate, just a day after cutting the 14-day reverse repo rate.

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This story was created with Benzinga Neuro and edited by Ananya Gairola