Bank of America CEO Discusses Economic Slowdown and Fed Cutting Interest Rates
The chairman and CEO of Bank of America, Brian Moynihan, shared insights on the U.S. economy and the potential Federal Reserve interest rate cuts during an i
nterview with Fox Business on Wednesday. Moynihan detailed that according to Bank of America’s research team:
The economy slows down in the middle of ’24 to about a half-a-percent annualized growth for the second and third quarter, and then works its way back out. And the Fed will start cutting rates, they believe, in the middle of next year to the latter half of next year. So that’s the basic thing, what would be called a soft landing.
The Bank of America chief then cautioned that there is a geopolitical risk,
such as if the Fed tightening goes too far.
Moynihan discussed how interest rate hikes have changed consumer and business decision-making. The Federal Reserve has raised its key
interest rate 11 times since March of last year, pushing it to the highest level in 22 years.
People are forgetting on the commercial side, there’s a huge impact of higher rates in terms of people’s willingness to borrow … And so lending conditions are tight, and that’s what the Fed wanted to achieve.
