Profits at JPMorgan Chase fell by 28% in the second quarter as the bank tries to navigate an economy that's showing strength in many areas but losing steam as interest rates continue to rise, hitting consumers and corporations alike.

The nation’s largest bank by assets said Thursday that it earned a profit of $8.65 billion, or $2.76 per share in the period. That compares to a profit of $11.95 billion, or $3.78 per share, in the same period a year ago. Last year’s profits were boosted by a one-time release of JPMorgan’s loan-loss reserves, which were funds the bank set aside to cover potentially bad loans during the pandemic.

The results came in below Wall Street’s expectations. Analysts surveyed by FactSet were expecting the bank to earn a profit of $2.89 a share.

CEO Jamie Dimon said in a statement that while the U.S. economy is growing and the job market and consumer spending are solid, a number of factors “are very likely to have negative consequences on the global economy sometime down the road,” including shrinking consumer confidence and the Federal Reserve’s efforts to bring decades-high inflation under control.

Investment banking revenue fell about 60% as companies made fewer deals, but markets revenue rose 15% on strong performances in both stocks and bonds trading.

Consumer banking income was $3.1 billion, down by 45% from last year's period, reflecting the absence of the credit reserve release from last year.

Bank stocks have been hit hard this year as investors have worried about the Federal Reserve putting the U.S. economy into recession to combat inflation. A recession would mean some Americans would lose jobs, and likely start falling behind on their loans. These fears have more than offset the higher revenues that banks have earned from higher interest rates.

JPM Morgan shares dipped 2.6% in premarket trading.