U.S. Banks' $1 Trillion Windfall, CFOs' Election Predictions, and More: This Week in Economics

The past week has been a roller coaster in the world of finance and economics. From American banks making huge windfall profits due to high interest rates to CFOs predicting the outcome of the upcoming presidential election and the disappearance of a prominent Chinese economist, there's a lot to catch up on.

Here's a quick summary of the biggest stories.

US banks make $1 trillion windfall

Major US banks, including JPMorgan and bank of americathey would have made a $1 trillion windfall due to the Federal Reserve's prolonged period of high interest rates. The Federal Reserve maintained high interest rates for two and a half years, allowing banks to earn higher returns on deposits held at the Fed. However, many banks did not pass on these higher rates to their savers, resulting in excess interest income of $1.1 trillion.

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CFOs Predict Harris' Victory in Presidential Election

In a recent survey, a majority of CFOs predict that VP Kamala Harris will win the next presidential election, despite believing that donald trump It would be better for the economy. CNBC's CFO Council Q3 survey reveals that 55% of CFOs expect Harris to prevail in the election, marking a notable change from the previous quarter.

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See also: Mortgage demand soars as Federal Reserve interest rate cut fuels housing market revival: 'Next spring could see a real rebound'

Former Obama adviser warns of threats to Federal Reserve independence

Jason Furmankey figure of the former president from barack obama administration, has warned of possible threats to the independence of the Federal Reserve under a possible second term of Republican presidential candidate Donald Trump. Furman argues that Trump's campaign promises could create inflationary pressures, forcing the Federal Reserve to raise interest rates.

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Prominent Chinese economist disappears

Zhu Hengpenga prominent economist in China, has disappeared after critical comments about the president by Xi Jinping economic policies. Zhu, deputy director of the Chinese Academy of Social Sciences (CASS), was detained after allegedly criticizing Xi in a private WeChat group.

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Chinese stocks soar after major stimulus

Chinese stocks, including Alibaba Group Holding Ltdspiked earlier this week following unexpected and substantial monetary stimulus from the People's Bank of China (PBoC). The central bank announced cuts in the reserve requirement ratio (RRR) for banks and the seven-day repo rate, just a day after reducing the reverse repo rate to 14 days.

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Photo courtesy: Shutterstock

This story was generated using Benzinga Neuro and edited by Ananya Gairola