The American consumer is "in good shape" and spending more this month than a year earlier, even amid inflation, jittery markets and international tensions, according to Bank of America Chief Executive Brian Moynihan.
"The consumers basically have more money in their accounts by multiples than they did pre-pandemic," Moynihan said Wednesday at the Institute of International Finance annual m
Moynihan was building on comments he made last month in which he stressed that U.S. consumers are well positioned to weather the effects of rising interest rates, inflation, geopolitics and the potential of a recession on the horizon. The Federal Reserve has to raise rates to slow down inflation, and act against these spending forces, he said at the IIF conference.
"The toughest challenge for the Fed is actually one of the best things about the U.S. economy — is that it's in pretty good shape," he said.
The biggest U.S. banks report financial results starting this week amid escalating macroeconomic and geopolitical pressures. JPMorgan Chase Chief Executive Jamie Dimon offered hints Monday of what his bank is bracing for, warning that "serious" headwinds are likely to push the US and global economies into recession by the middle of next year.
Investors need to prepare for a change and adapt to the markets, Moynihan said.
"Whether they are ready or not, they are getting it," he said. Markets "are "never totally ready, but are they forewarned with the volatility going on? Absolutely."
