Bank Leaders Deliberate Tariffs with Commerce Secretary

Top executives of the largest U.S. banks met with Commerce Secretary Howard Lutnick to discuss the implications of President Trump's sweeping tariff announcement. As financial markets react with volatility, bank leaders express concern over potential economic repercussions, highlighting the need for sound policy and regulation.

The leaders of the largest U.S. financial institutions convened with Commerce Secretary Howard Lutnick to address the consequences of President Donald Trump's new tariff policy. This meeting, part of the Financial Services Forum's routine schedule in Washington, aimed to clarify the administration's intentions, as fears of economic instability rise.

Following Trump's announcement of significant global tariffs, the discussion between Lutnick and bank CEOs came at a critical time. Executives voiced apprehensions regarding the potential long-term impacts on the economy and followed the meeting with a separate consultation on Sunday, organized by the Bank Policy Institute, to further examine these concerns.

As investors evaluate the ramifications of these tariffs, financial markets, particularly bank stocks, have experienced significant downturns. The KBW Bank index plummeted by 15.2% since Trump's declaration. Concerns continue to mount over potential reductions in consumer spending and increased recession risks.

(With inputs from agencies.)