Big American banks, including JPMorgan, Wells Fargo, Bank of America, and Citigroup, reported reduced profits after a turbulent fourth quarter.

The Federal Reserve increased rates last year to contain inflation, but concerns remain over whether the economy can avoid a recession and how quickly interest rates will be lowered this year.

JPMorgan Chase CEO Jamie Dimon stated that consumers were still spending and markets were anticipating a soft landing, but warned that government spending might continue to drive up prices.

The wars in the Middle East and Ukraine could destabilize the world economy and lower interest rates could deplete system liquidity.

Wells Fargo Chief Financial Officer Mike Santomassimo also noted that rate decreases increased market uncertainty.

The banks set aside more than $8 billion to replenish the government’s deposit insurance fund (DIF), which suffered a $16 billion loss following the failure of Silicon Valley Bank and two other lenders last year.