Finance and Banking

The CEO of Bank of America, Brian Moynihan, said that the financial giant no longer believes a recession is on the horizon for the American economy, hinting that the Biden administration and Federal Reserve have achieved a “soft landing” after inflation troubles in recent years, The Hill reported. Moynihan told CBS’s Margaret Brennan on “Face the Nation” Sunday that while the economy is slowing, consumer spending remains in line with prepandemic levels. “Our team is a great team at Bank of America Research; [it] does not have any recession predicted anymore,” Moynihan said. “Last year, this time, it was a recession.” Moynihan said the consumer spending rate stands at about 3 percent, about half of what it was last year. Consumers are feeling the pressure of high interest rates, though signs are still positive. “The consumer has slowed down. They have money in their accounts, but they’re depleting a little bit,” he said. “They’re employed, they’re earning money, but if you look at — they’ve really slowed down. So the Fed is in a position [where] they have to be careful that they don’t slow down too much.” Bank of America predicts two Fed interest rate cuts this year, one at next month’s meeting and one in December. The bank also predicts four rate cuts in 2025, Moynihan said. The Fed opted not to cut rates at its July meeting, going against market predictions.