WRAPUP 1-Wall Street banks cautious on inflation and economy

By Matt Scuffham, Noor Zainab Hussain and Elizabeth Dilts Marshall

NEW YORK, Feb 17 (Reuters) – Wall Street’s biggest banks sounded a note of caution over the year ahead on Thursday, citing high inflation, credit concerns and the possibility of less asset appreciation, even though investment banking pipelines and loan growth remain healthy.

Banks reported a mixed bag of earnings last month with some disappointments as trading revenue fell in the fourth quarter after markets normalized and the Federal Reserve scaled back its asset purchases. They are now grappling with high inflation and a Federal Reserve that is looking to raise rates more aggressively.

Several top executives updated on market conditions at the Credit Suisse Financial Services Forum in Florida, coming about a month after they reported fourth-quarter earnings.

“We’re moving from an environment of very easy money and below trend inflation to an environment of tighter money and above trend…

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