Bank of America’s CEO, Brian Moynihan, shares insights on the U.S. economy’s expected slowdown in mid-2024 and the Federal Reserve’s potential interest rate cuts. Discover the impact on consumer and business decisions.
Bank of America CEO Brian Moynihan recently discussed the U.S. economy’s outlook during an interview with Fox Business. According to Bank of America’s research, he foresees a slowdown in the economy around the middle of 2024, with annualized growth dropping to around half a percent for the second and third quarters. Moynihan also predicted that the Federal Reserve would begin reducing interest rates, starting in the middle of next year and continuing into the latter half of the year.
He characterized this as a “soft landing” but cautioned against potential geopolitical risks if the Fed’s tightening measures go too far. Moynihan highlighted the impact of recent interest rate hikes on consumer and business decision-making. The Federal Reserve has raised its key interest rate 11 times since last March, reaching its highest level in over two decades.
Inflation remains a concern, with a 0.4% increase in the consumer price index reported for everyday goods in September. Moynihan stressed that higher interest rates affect rate-sensitive activities, including home and car purchases, ultimately leading to a slowdown in consumer activity.