The Globe and Mail reports in its Saturday, Oct. 15, edition that the outlook for the U.S. economy from Wall Street's biggest banks is getting gloomier, with many top executives saying they are preparing for a potential downturn or a recession. An Associated Press dispatch to The Globe reports that many bank chief executive officers have spent the past year and a half trumpeting the strength of the U.S. economy and the resilience of the U.S. consumer. Many did so again Friday after reporting quarterly results, but this time with an overriding sense of caution. U.S. Bank CEO Andy Cecere said, "We recognize the pressure points are building in several areas of the economy that could lead to stress in the future." Half a dozen banks reported their quarterly results on Friday, ranging from JPMorgan Chase & Co., Citigroup, U.S. Bank and PNC Financial Services Group. Bank executives painted a bifurcated picture of the economy. KPMG's Peter Torrente said, "Inflation is casting a long shadow on these banks' future outlooks." Reflecting the dimmer macroeconomic view, Citigroup, Wells Fargo and JPMorgan socked away cash in their loan-loss reserves. These reserves are set aside to cover potentially bad loans.
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