Bank of America CEO, Brian Moynihan says that he sees a relatively mild recession reaching the US. Moreover, CNBC reported Moynihan’s statements in the bank’s quarterly earnings call, amid US consumers that “remain in solid shape.”
“Everything points to a relatively mild recession given the amount of stimulus that was paid to people and the money they have left over,” Moynihan stated. Additionally, he noted that recent economic factors have consumers “being more careful.”
Bank of America CEO Talks Potential Recession
The current economic state of the US has been an interesting point of observation. Amid the macroeconomic pressure of inflation and a budding bank crisis, fragility abounds for the American citizen. Subsequently, many have pondered a potential recession for the country.
Now, speaking on a quarterly earnings call, Bank of America CEO Brian Moynihan says that there may be a “relatively mild recession” on the horizon. Additionally, Moynihan stated, “At the end of the day, we don’t see the activity on the consumer side slowing at a pace that would indicate that, but we would see commercial customers are being more careful.”
Moynihan said that “Bank of America’s research team has been consistent in calling for a mild downturn in light of the Federal Reserve’s aggressive rate hikes.” Moreover, the FED has already raised interest rates nine times, which is its fastest pace since 1980.
“The fact that unemployment is still 3.5% [indicates] full employment-plus. And then the wage growth is slowing and tipping over,” Monihan added. “So the signs of inflation are tipping down, and it’s still there, but that translates into relatively good activity, so we see a slight recession and we’ll see what happens.”