The Unstoppable American Shopper: Bank Titans Say the Consumer is Still King (and Queen) in Q3 2025

If you listened to every financial pundit over the last few years, you’d think the American consumer was subsisting on a diet of instant ramen, bargain bin finds, and sheer willpower. We’ve been braced for a downturn, a pullback, a “vibe-cession”—anything to suggest the party was finally over. But according to the Q3 2025 earnings calls from the Mount Rushmore of American banking—Goldman Sachs, JPMorgan Chase, Citigroup, and Wells Fargo—the story is less ‘doom and gloom’ and more ‘doom and boom.’

The verdict is in from the people who see our bank statements, and it turns out the resilient American consumer is the main character of this economic blockbuster, propping up a surprisingly robust U.S. economy with a mix of steady spending and shockingly good credit habits. As corporate America gets back into the swing of multi-billion dollar deal-making, the message is clear: don’t bet against the U.S. consumer’s dedication to swiping, tapping, and clicking ‘buy now.’

The Teflon Consumer: Shrugging Off Worries Like a Bad Trend

The single most consistent theme across all four banking giants was the remarkable strength of the average American’s finances. While analysts watch for cracks, the banks are reporting a foundation that looks more like reinforced concrete.

JPMorgan Chase was particularly bullish, with CFO Jeremy Barnum stating that consumers and small businesses “remain resilient” based on their vast trove of data. Their credit metrics are not just stable but are performing “slightly better than expected”. This isn’t just about people paying their bills on time; it’s about their continued confidence. In fact, JPMorgan is celebrating the “best year ever for new account acquisitions for our Sapphire portfolio,” its premium line of credit cards. Apparently, revenge travel now includes revenge-applying for cards with airport lounge access.

Wells Fargo painted a similar picture of stability and strength. CEO Charlie Scharf’s team noted that consumers “continue to be resilient as income growth has generally kept pace with increase in inflation and debt levels”. More impressively, their credit performance was not just strong but continued to improve in the quarter. While many of us are still lamenting the price of groceries, Wells Fargo’s data suggests their customers are managing just fine, with consumer net loan charge-offs declining across nearly all portfolios.

Citigroup’s CEO Jane Fraser hailed the U.S. as a “pace setter” for the global economy, a feat driven by “consistent consumer spending”. The bank feels good about its high-quality portfolio, noting that 85% of its U.S. card consumers have FICO scores of 660 or higher. This disciplined consumer base is allowing Citigroup to confidently manage its lending business, with delinquency and loss rates performing exactly as expected.

The collective takeaway is undeniable: the resilient American consumer is the economy’s anchor in 2025. They are spending steadily, managing debt responsibly, and showing no major signs of stress. While banks are prudently keeping an eye on the labor market for any potential softening, the consumer spending engine is, for now, firing on all cylinders.

Corporate America Gets Its Groove Back: The M&A Boom is Here

It wasn’t just consumers feeling confident. The mood in corporate boardrooms has shifted dramatically, leading to a resurgence in the kind of megadeals that make headlines. After a period of uncertainty, CEOs are back to thinking big.

Goldman Sachs is at the epicenter of this revival. CEO David Solomon highlighted “increased momentum in our #1 M&A franchise”. The numbers are staggering: the firm has advised on over $1 trillion in announced M&A volumes so far in 2025, putting them $220 billion ahead of their closest competitor. According to Solomon, after adapting to market volatility, many CEOs have “shifted their focus back to long-term and strategic decision-making”. That’s a lot of corporate handshakes, NDAs, and deal-closing dinners.

This isn’t a solo act. JPMorgan Chase reported a significant “pickup in activity across products” in its investment banking division, with a particularly active IPO market. Their deal pipeline remains “robust” and client sentiment is described as “upbeat”. Likewise, Citigroup saw its investment banking fees climb 17% on the back of CEO confidence fueled by “record equity prices”. Wells Fargo wasn’t left out, with its investment banking fees soaring 25% from a year ago. They even advised on the largest announced deal of 2025, the $85 billion acquisition of Norfolk Southern by Union Pacific.

What’s fueling this corporate shopping spree? According to Goldman Sachs, it’s a perfect cocktail of opportunity and capital. Financial sponsors are sitting on a massive “$1 trillion of dry powder,” just waiting to be deployed, alongside a more “supportive regulatory environment”. This combination has unleashed a wave of activity that is expected to continue, providing a powerful tailwind for the economy.

The AI Elephant in the Room (And It’s Very Productive)

Lurking behind the consumer and corporate good news is a technological revolution that the banks see as a fundamental game-changer: Artificial Intelligence.

Goldman Sachs is so bullish on AI that it has launched “One Goldman Sachs 3.0,” a new, centralized operating model that is “Propelled by AI” and designed to drive massive efficiencies. Solomon sees the “tremendous amount of investment in AI infrastructure” as a key force driving capital formation and believes the resulting productivity gains will be “very meaningful over the next few years”.

Citigroup is already putting AI to work on a massive scale. The bank has launched a firm-wide initiative to “systematically embed AI in our processes end-to-end”. Nearly 180,000 of its employees now have access to proprietary AI tools, which have been used almost 7 million times this year alone. The impact is tangible: automated code reviews alone are creating “around 100,000 hours of weekly capacity”. That’s enough free time to watch every episode of every streaming show ever made, and still have time for a long nap. What that means for long term employment trends remains to be seen but it’s certainly a good thing for efficiencies if you’re an investor.

JPMorgan Chase, while also investing heavily, is taking a slightly more reserved, “show me the money” approach. The bank acknowledges the hype but maintains that for them, “the proof is going to be in the pudding in terms of actually slowing the growth of expenses”. It’s a pragmatic stance that underscores the transition from AI as a buzzword to AI as a measurable business tool.

The Final Word: Cautious Optimism is the Vibe

So, what’s the ultimate message from Wall Street’s corner offices? The American economy, led by the resilient American consumer in 2025, is in a surprisingly strong position. Consumers are spending, corporations are dealing, and technology is unlocking new levels of productivity.

However, this isn’t an invitation to go remortgage your house for meme stocks. The bank leaders were careful to sprinkle in notes of caution. Goldman Sachs’ David Solomon warned of “a fair amount of investor exuberance at the moment” and stressed that “disciplined risk management is imperative”. JPMorgan remains watchful of the labor market and other uncertainties.

The overarching sentiment is one of confident optimism, tempered with the wisdom that market cycles are inevitable. For now, the American economy’s engine is humming along nicely, powered by consumers who apparently never got the memo about the impending recession. The biggest risk, it seems, isn’t a crash, but perhaps just getting a little too carried away with the good times.