Brian Moynihan, CEO of Bank of America, said that the American economic system, in his opinion, is moving towards the realization of optimistic prospects in the foreseeable future, noting that it is likely to be expected to have a so-called soft landing rather than a recession.
Mr. Moynihan made the corresponding statement last Tuesday, December 5, during a speech at the Goldman Sachs U.S. financial services conference. The head of one of the largest financial institutions in the structure of the American banking sector also noted that there are signs of a slowdown in the United States economy, but said that this circumstance does not negate his optimistic attitude towards the overall prospects.
Brian Moynihan stated that money from customer accounts is coming in steadily. Separately, he noted that the level of consumer spending in the United States is currently in an acceptable range. According to him, this fact, existing in the space of the American sphere of finance, is positive news, indicating the normalization of the state of affairs in the economy.
Mr. Moynihan’s opinion corresponds to the point of view of many economists who argue that currently, the spending figures of residents of the United States are at a level sufficient to prevent the implementation of a recession scenario. According to them, the data that American consumers have begun to save money on purchases, especially in the case of evaluating the possibility of buying expensive products, is not an obstacle to a positive dynamic economy. The mentioned features of consumer behavior are caused by inflation, the duration of which did not coincide with expectations of a faster end to a period of significant price increases for goods and services and an increase in the cost of borrowing.
At the same time, many experts note that the further development of the situation in the United States economy largely depends on the state of affairs in the labor market, which has seen a decrease in activity in recent months. On Tuesday, the US Department of Labor published data according to which the number of open jobs is now the minimum compared to the average for the last more than two years. A study by the department’s Job Openings and Labor Turnover Survey (JOLTS) indicates that the number of job offers per unemployed person is currently at its lowest level since August 2021.
Brian Moynihan said that the Federal Reserve should take a cautious approach in taking measures to combat inflation through a strategy of raising interest rates. According to him, at the moment, a significant increase in interest rates will not be the right decision.
Mr. Moynihan also spoke about Bank of America’s sales and trading arm during his speech at the conference. He stated that this unit is getting closer to demonstrating a successful result for the fourth quarter of this year. Brian Moynihan says that positive prospects are the result of the efforts of a team of specialists. He also said that Bank of America continues to be focused on the middle market, where a high level of activity is still recorded.
The financial institution, headed by Mr. Moynihan, expects the total amount of fees to be about $1 billion in the fourth quarter. This means a decrease in profits. At the same time, Brian Moynihan says that the expected result exceeds the average figures in the banking sector. He is also confident that the financial institution will continue its intensive deal-making activities.
As we have reported earlier, Bank of America Predicts Significant Economic Impact of AI.
