U.S economy is not heading for a recession, says Bank of America CEO

Despite last week’s collapse in the US stock market and a 4.3% rise in unemployment, the CEO of Bank of America, Brian MoynihanHe said he had not seen a recession on the horizon for the US economy, reports ‘The Hill’. In her appearance on Margaret Brennan’s CBS show “Face the Nation” on Sunday, she tried to defend Joe Biden and the Federal Reserve indicating that they have achieved a “soft landing” for the US Economy after the inflation problems of recent years.

Bank of America CEO: No signs of recession

He said his team is a great team at Bank of America Research, and that no recession has been predicted already. He recalled that last year was already a recession at this time. Elaborating on his point, Moynihan said that the consumer spending rate is hovering around 3 percent, about half of what it was last year. He admitted that consumers are feeling the pinch from high prices. interest ratesalthough the signs remain positive.

Brian Moynihan: Consumers have slowed down

Bank of America’s chief executive said that spending has slowed down. He said that they have money in their accounts, but it is running out a bit. Defending the country’s economic situation, he said that consumers are employed, they are making money, but it is slowing down.

Moynihan said the Fed needs to be careful not to slow down too much. According to The Hill, Bank of America has forecast two Fed interest rate cuts this year, one at next month’s meeting and another in December. It has also forecast there could be four interest rate cuts in 2025.

When will the Federal Reserve cut interest rates?

The Federal Reserve opted not to cut rates at its July meeting, contrary to market predictions. However, Chairman Jeremy Powell was quick to hint that it would cut interest rates in September. However, most people who follow the Fed closely have said that it is likely to hold an emergency meeting before September to announce a cut in bank rates.

Frequently Asked Questions

What has Bank of America CEO said about the US economy?
Bank of America CEO Brian Moynihan has said he does not see a recession on the horizon for the U.S. economy. Moynihan elaborated on his argument, saying the consumer spending rate is hovering around 3%, roughly half of what it was last year. He admitted that consumers are feeling the pinch from high interest rates, though the signs remain positive.

What happened to bank interest rates?
The Federal Reserve opted not to cut rates at its July meeting, contrary to market predictions. However, Chairman Jeremy Powell was quick to hint that it would cut interest rates in September. However, most people who follow the Fed closely have said that it is likely to hold an emergency meeting before September to announce a cut in bank rates.