Wells Fargo Chairman and CEO Charles Scharf maintains a positive view of the US during the Iran war.
In a new Fox Business interview, Scharf says say Various indicators at the household and business levels all point to a robust US economy.
“… by separating the pure economics from the markets, which people are nervous about in terms of what the future holds, the economy is still extremely strong. If we look at the consumers, they are still spending money even as oil prices rise – they are spending 20%, 30% more on oil. But they haven’t stopped spending money on everything else.
Delinquencies are still high, employment is still strong, wages are still growing, and businesses are in good shape. It’s still very early, but if you just look at the health of the consumers and the health of the businesses that we serve, which is quite broad across the country, things are really looking good.”
However, Scharf says the state of the economy could change depending on the duration and outcome of the war in Iran.
“We have markets that are declining on the one hand. You see some nervousness. You also have this debate about: are people taking enough into account the risks of war? And markets have debates. That will continue.”
But it feels like there is a vulnerability or nervousness in the markets that you are not yet seeing in the economy. Which, depending on how long the war lasts, may turn out to be okay. Or there could be a trigger that could make things a little bit worse.”
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