NEW YORK—Consumers’ balance sheets are “in good shape” and they will keep spending at an elevated clip, at least in the near term, according to Bank of America CEO Brian Moynihan.
“Consumers are in good shape, not overleveraged,” Moynihan, CEO of the second biggest U.S. bank by assets, told Bloomberg Television.
The bank’s customers have checking and savings accounts that are still larger than before the pandemic and are spending 10% more so far in May than the year-earlier period, he said.
“What’s going to slow them down? Nothing right now,” Moynihan said.
Response to Fed
But as CNBC added, “The Federal Reserve is in the middle of an inflation-fighting campaign that has pummeled markets, especially for formerly high-flying growth stocks. Concern has been mounting that inflation at multidecade highs and a central bank slamming the brakes on easy-money policies will tip the economy into recession. American consumers could help the U.S. avoid that scenario.”
When it comes to the central bank, Moynihan stated, “The Fed has this typically very difficult thing of getting (consumers) to slow down without slowing down too much. I believe they are going to be able to manage this flow, but it’s going to be tricky.”
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