'We got to keep the consumer in the game': Brian Moynihan worries about a spending slowdown

By Steve Gelsi

Bank of America's CEO says inflation has been sapping U.S. sentiment

Bank of America Corp. Chief Executive Brian Moynihan said the economic health of the United States going forward depends on whether consumers keep spending despite inflation that may start cooling off late next year.

"We got to keep the consumer in the game in the U.S. economy because it's such a big part of it," Moynihan said Thursday at the AllianceBernstein Strategy Decisions Conference.

However, spending has gotten a little more tentative, he said, according to a transcript of the event.

"That is due to everything going on around them," Moynihan said. "Goods are more expensive, they're shaping their spending."

Bank of America (BAC) economists currently estimate that it will take the Federal Reserve until the end of next year to get inflation under control, he said.

The U.S. economy will remain at about a 1.5% to 2% growth rate.

Meanwhile, commercial customers of Bank of America are saying they're being careful, and slowing down their spending, he said.

They still feel good about the performance of their businesses, but they may not be hiring as much, or buying equipment as quickly partly because the cost of borrowing has gone up, he said.

Bank of America's stock has risen 17% so far in 2024, compared to a 9.4% gain by the S&P 500 SPX.

Also read: 'Our view is a soft landing is still the base case': Goldman Sachs exec

-Steve Gelsi

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05-31-24 1348ET

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