Home Investing Bank of America CEO Brian Moynihan says nothing will gradual U.S client from spending cash

Bank of America CEO Brian Moynihan says nothing will gradual U.S client from spending cash

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Bank of America CEO Brian Moynihan says nothing will gradual U.S client from spending cash

Brian Moynihan, CEO of Bank of America, talking on the WEF in Davos, Switzerland on May twenty third, 2022. 

Adam Galica | CNBC

U.S. shoppers are “in good shape” and can hold spending at an elevated clip, at the least within the close to time period, based on Bank of America CEO Brian Moynihan.

“Consumers are in good shape, not overleveraged,” Moynihan, CEO of the second greatest U.S. financial institution by belongings, advised Bloomberg Television from Davos, Switzerland.

The financial institution’s prospects have checking and financial savings accounts which can be nonetheless bigger than earlier than the pandemic and are spending 10% extra to date in May than the year-earlier interval, he stated.

“What’s going to slow them down? Nothing right now,” Moynihan stated.

The Federal Reserve is in the midst of an inflation-fighting marketing campaign that has pummeled markets, particularly for previously high-flying progress shares. Concern has been mounting that inflation at multidecade highs and a central financial institution slamming the brakes on easy-money insurance policies will tip the economic system into recession. American shoppers might assist the U.S. keep away from that situation.

“The Fed has this typically very difficult thing of getting them to slow down without slowing down too much,” Moynihan stated. “I believe they are going to be able to manage this flow, but it’s going to be tricky.”

Among financial institution CEOs, Moynihan has been extra optimistic that the U.S. can dodge a recession. Earlier this month, JPMorgan Chase CEO Jamie Dimon put the percentages at 66% that the U.S. can have some form of financial slowdown.

“The odds are the following: something like, yes, they can engineer a soft landing, a third of a percent chance,” Dimon advised Bloomberg. “Probably a third of a percent chance they can engineer a mild recession …and then there’s a chance this could be much harder than that.”

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