Fears are simmering that inflation (and aggressive interest rate hikes to fight it) could push the economy into recession in 2023. Historically, the combination has indeed caused economic turbulence.
The Federal Reserve this year lifted rates multiple times. Collectively, they marked
To be sure, the vast majority of banks posted continued solid credit quality with third-quarter earnings, and many said they expected more of the same with four-quarter earnings reports in January. But executives are paying closer attention to potential threats as the industry moves into the New Year.
Against that backdrop, here are four areas bankers and analysts are watching with some trepidation.