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Excerpt from news.google.com
A highly-dreaded U.S. recession is no longer in the works, according to Bank of America CEO Brian Moynihan.
The nation’s second-largest bank is not predicting an economic downturn “anymore,” Moynihan told CBS‘ Margaret Brennan on “Face the Nation” Sunday. “Last year, this time, it was a recession,” he stated. “This year we talked about now there’s no recession.”
BofA’s latest prediction suggests the Federal Reserve’s efforts at taming inflation while keeping the U.S. economy afloat are working.
Consumer spending has softened, Moynihan said, citing the lender’s vantage point of having a customer base of 60 million. People in July and August spent at a growth rate of about 3% this year — half the rate it was in 2023, BofA found. Consumers “have money in their accounts, but they’re depleting a little bit. They’re employed, they’re earning money, but if you look at — they’ve really slowed down,” he said.
