Brian Moynihan, the CEO of Bank of America, recently mentioned a “relatively mild recession” coming to the US. During the bank’s quarterly earnings call, he highlighted that the US consumers are in good shape, with leftover stimulus funds, but are also becoming more careful.
A Glimpse into a Potential Recession
The US economy has been the center of attention recently, as it faces inflation and a potential bank crisis. Many have speculated about the possibility of a recession. In a quarterly earnings call, Bank of America’s CEO, Brian Moynihan, confirmed that a “relatively mild recession” may be in store. He explained that while consumer activity is not slowing at an alarming rate, commercial customers are becoming more cautious.
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Moynihan pointed out that the Bank of America research team has consistently predicted a mild downturn due to the Federal Reserve’s aggressive rate hikes. The Fed has raised interest rates nine times, marking the fastest pace since 1980.
He added, “The fact that unemployment is still 3.5% [indicates] full employment-plus. And then the wage growth is slowing and tipping over. 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.”
