BofA CEO Sees 3 Fed Rate Hikes as Consumer Spending Rises 5%-6%
Updated
Updated · CBS New York · Jul 19
BofA CEO Sees 3 Fed Rate Hikes as Consumer Spending Rises 5%-6%
3 articles · Updated · CBS New York · Jul 19
Summary
Bank of America’s 70 million consumer clients spent more than $400 billion a month, with June and early July spending up 5%-6% from a year earlier despite affordability worries.
Moynihan said higher oil and gas costs are likely to keep inflation elevated into 2027 and 2028, leading BofA to expect the Federal Reserve to raise rates later this year rather than cut them.
He pushed back on concerns about worsening card stress, saying prime credit-card delinquencies have improved quarter to quarter and pointing to 4.2% unemployment and 208,000 weekly jobless claims as signs of a stable consumer backdrop.
On housing, Moynihan said supply remains the main affordability problem, arguing cities must permit more building faster even as BofA’s mortgage production rose 30% in the quarter.
He also said investment-banking activity remains strong, with BofA’s fees up about 50% year over year and deal pipelines near record levels, helped by IPO, debt and M&A demand.