At last, Wall Street has something to cheer

Capital markets are twitchy. When interest rates spiked in 2022, their response was fast. Stocks plunged; bosses deferred plans to go public, issue stock and buy rivals. Sharp-suited bankers suddenly found their calls going unanswered. By contrast, the economy adapts slowly. As inflation climbed, people did not cut back much on spending, instead using their credit cards more. With the labour market healthy, they did not struggle to repay debt as rates rose. The result was a bonanza for consumer banks. They raked in ever more interest from resilient borrowers as defaults and delinquencies stayed low.