Top Executives at major Wall Street banks have expressed caution about the U.S. economy as tariffs begin to affect corporate behavior and inflation trends. Citigroup CEO Jane Fraser said, "We have seen pauses in capex and hiring amongst our client base," though she acknowledged recent economic resilience driven by consumers and entrepreneurs. Wells Fargo CEO Charles Scharf also noted restrained activity, stating, "Many have found ways to avoid passing the 10% tariffs on to their customers. At the same time, they are preparing for the downside and are not growing inventories or hiring aggressively and developing contingency plans if the downside scenario occurs." JPMorgan CEO Jamie Dimon echoed these sentiments, remarking that “significant risks persist,” despite the economy’s overall strength. Goldman Sachs CEO David Solomon added, "The ultimate impact on growth from higher tariffs is yet unknown."
Economists reported a 0.3 percent rise in the Consumer Price Index in June, the highest in five months, with rising import costs attributed to tariff pressures. While stock indices reached record highs in late June, 2025 yields on 30-year Treasury bonds rose following the inflation data. Executives noted continued uncertainty, though many expect a rebound in deal activity in the second half of the year. Morgan Stanley CFO Sharon Yeshaya said, “Corporations are looking past tariffs to lead their companies through strategic movements and growth.”
