FX.co ★ US banking sector reports record earnings

According to the Office of the New York Comptroller, US financial companies earned $11.3 billion during the first half of the year. This is 29% bigger than earnings received in the same period of the last year. It is the highest figure since 2011.
However, the report warns that the global economic activity weakening (especially in China) can curb US financial corporations’ profits. In addition, experts note financial markets remain unsteady due to the US Federal Reserve wavering between terms of a rate hike. The New York Comptroller Office supposes that US corporations will have to function amid higher market volatility.
At its latest meeting, the US Fed left the benchmark interest rate unchanged in the wake of the Chinese stock market collapse. The decision met forecasts of most investors. However, markets are still distressed as there is a probability the Fed will raise the interest rate any time soon, which in its turn will cause capital outflows.