Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTReuben Gregg Brewer, The Motley FoolSat, June 13, 2026 at 7:35 AM GMT+2 4 min readJPMorgan Chase (NYSE: JPM) is one of the largest banks in the world, with a business that spans from the local corner bank to investment banking (it is one of the companies helping out with the SpaceX (NASDAQ: SPCX) IPO). That said, its results are heavily impacted by changes in interest rates. Here's a look at the company's 7% net interest income target for 2026 and why it may need to raise it.JPMorgan Chase entered 2026 with expectations for headwindsWhen rates rise, JPMorgan Chase can charge higher interest rates on the loans it makes. And it can drag its feet when it comes to increasing the rates it pays to its bank customers. The outcome is higher net interest income. However, if rates fall, the bank's net interest income declines because it charges lower interest rates on its loans. It has no choice if it wants to remain competitive. And it takes time to lower the rates it pays depositors, further compounding the headwind.Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »Image source: Getty Images.As JPMorgan Chase entered 2026, it expected net interest income to rise by about 7%. However, the interest rate outlook shifted in the first quarter. Going in, Wall Street was anticipating rate cuts in the back half of the year. During the quarter, the rate outlook changed to rates holding steady. Only JPMorgan Chase didn't update its net interest income goals because its original view was for rates to fall late in the year. Thus, there was little impact from the new outlook, and any impact was expected to be offset by other parts of the business.Things just got easier for JPMorgan ChaseInterest rate expectations have changed again since the end of the first quarter, with higher rates increasingly likely as inflation has started to tick up. If interest rates rise, JPMorgan Chase could have an easier time hitting its 7% net interest income growth target. And, perhaps, it may even consider raising the target.That said, the same puts and takes that kept the company from raising its target after the first quarter may hold it to a cautious outlook when it reports second-quarter earnings. While the interest rate environment has shifted from negative to neutral to positive, geopolitical conflicts persist, inflation is still elevated, and the S&P 500 index (SNPINDEX: ^GSPC) remains near all-time highs. JPMorgan Chase might simply be happy that its net interest income target is easier to achieve and leave it at that.Terms and Privacy PolicyPrivacy & Cookie SettingsMore Info