Bank of America CEO Brian Moynihan Expects Soft Landing for Economy

Bank of America Chairman and CEO Brian Moynihan reportedly said he believes that the economy is heading toward a soft landing, avoiding a recession. 

Speaking Wednesday (Sept. 27) at the Economic Club of New York, where he discussed the Federal Reserve’s battle against inflation and the future of interest rates, Moynihan acknowledged that consumer spending growth has slowed compared to the previous year but emphasized that it is still rising, Reuters reported Wednesday. Bank of America’s data on consumption patterns supports this observation. 

The Fed has been successful in combating inflation in the near term, but interest rates are likely to remain higher for a longer period, Moynihan said, according to the report. 

In terms of the Federal Reserve’s actions, Moynihan praised their efforts in tackling inflation but cautioned against going too far and restricting economic activity, the report said. He stressed the need for balance in the Fed’s approach to ensure continued economic growth. 

Goldman Sachs CEO David Solomon also recently said that the chance of a relatively soft landing has increased over the past year, but that inflation may be more persistent than expected. Solomon said on Sept. 12 that inflation could be stickier than optimistic market participants anticipate, emphasizing that there is still work to be done. 

Moynihan also addressed proposed capital rules that banking executives argue would limit lending to U.S. businesses and decrease the nation’s competitiveness, according to the report. He expressed concern about the potential impact of these rules and emphasized the importance of making their points clear to regulators. 

On Sept. 11, PYMNTS reported that J.P. Morgan Chase & Co. Chairman and CEO Jamie Dimon voiced his criticism of the stricter capital rules proposed by U.S. regulators, saying the rules could hinder economic growth. Dimon also called for more transparency in the regulators’ decision-making process, emphasizing the importance of fairness, transparency and openness. 

Moynihan also touched on the state of capital markets Wednesday, highlighting significant potential for activity such as initial public offerings (IPOs) and buyouts, the Reuters report said. However, he emphasized the importance of stability for a general flow of activity to occur.