The Financial system Is on Strong Footing Regardless of Tariff Turmoil, Financial institution of America CEO Says

Dangers are mounting, however the economic system remains to be in a great place, in accordance with Financial institution of America CEO Brian Moynihan.

Moynihan on the corporate’s first-quarter earnings name Tuesday morning stated the financial institution’s analysis crew “doesn’t at the moment imagine we’ll see a recession in 2025,” although it has lowered its development price estimates for US gross home product. The financial institution does not count on the Fed to chop charges this 12 months, he stated.

Financial institution of America (BAC) topped first-quarter earnings estimates on Tuesday. Different large banks have additionally reported better-than-expected outcomes for the quarter when market volatility fueled large positive aspects in buying and selling income for a lot of.

Moynihan joined different large financial institution executives in expressing some concern about financial uncertainty. He famous that the percentages of a recession had elevated just lately, however added it could be “a really slight recession, and we must always fare effectively on that.”

Moynihan pointed to wholesome shopper spending and enterprise knowledge as causes for optimism. Shopper spending, he stated, continued to develop at a robust clip within the first quarter regardless of considerations that tariffs will power Individuals to rein of their spending. Sure retailers could also be seeing slower gross sales, he stated, “however within the combination, the patron retains pushing cash into the economic system.”

BofA’s enterprise shoppers additionally ended the quarter on steady footing, in accordance with Moynihan. “As we take a look at our enterprise facet and what our enterprise shoppers are telling [us], within the present setting they continue to be worthwhile, liquid and have robust outcomes,” he stated.

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