Financial institution of America CEO says nothing will gradual US client from spending cash

Brian Moynihan, CEO of Financial institution of America, talking on the WEF in Davos, Switzerland on Could twenty third, 2022.

Adam Galica | CNBC

US shoppers are “in fine condition” and can maintain spending at an elevated clip, not less than within the close to time period, in response to Financial institution of America CEO Brian Moynihan.

“Customers are in fine condition, not overleveraged,” Moynihan, CEO of the second largest US financial institution by property, instructed Bloomberg Tv from Davos, Switzerland.

The financial institution’s prospects have checking and financial savings accounts which are nonetheless bigger than earlier than the pandemic and are spending 10% extra to this point in Could than the year-earlier interval, he mentioned.

“What is going on to gradual them down? Nothing proper now,” Moynihan mentioned.

The Federal Reserve is in the course of an inflation-fighting marketing campaign that has pummeled markets, particularly for previously high-flying development 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 US keep away from that state of affairs.

“The Fed has this usually very troublesome factor of getting them to decelerate with out slowing down an excessive amount of,” Moynihan mentioned. “I consider they’re going to have the ability to handle this circulate, however it’ll be difficult.”

Amongst financial institution CEOs, Moynihan has been extra optimistic that the US can dodge a recession. Earlier this month, JPMorgan Chase CEO Jamie Dimon put the chances at 66% that the US may have some sort of financial slowdown.

“The chances are the next: one thing like, sure, they’ll engineer a comfortable touchdown, a 3rd of a % likelihood,” Dimon instructed Bloomberg. “Most likely a 3rd of a % likelihood they’ll engineer a gentle recession …after which there’s an opportunity this may very well be a lot more durable than that.”

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