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

Dangers are mounting, however the financial system remains to be in a superb place, in response to 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 presently imagine we’ll see a recession in 2025,” although it has lowered its development fee 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 chances of a recession had elevated lately, however added it might be “a really slight recession, and we should always fare nicely on that.”

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

BofA’s enterprise shoppers additionally ended the quarter on steady footing, in response to Moynihan. “As we take a look at our enterprise aspect 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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