Global Courant 2023-04-19 01:38:17
bank of AmericaThe company’s customers spend freely on food, entertainment and other experiences, which in turn supports employment in the U.S., CEO Brian Moynihan told CNBC’s Becky Quick.
The bank’s customers spent 8% more in the first three months of this year compared to the same period last year, Moynihan told Quick on Tuesday.
“They’re frankly spending money on things that stimulate employment, which means they’re spending money on experiences in theme parks and theaters or restaurants or outdoor concerts,” Moynihan said.
The current momentum is part of a virtuous cycle that supports employment, as opposed to a previous boom in hard goods that mainly supported foreign producers, said the CEO of the second largest US bank by assets. Earlier Tuesday, Bank of America released first-quarter results that beat expectations as the bank benefited from higher interest rates.
Moynihan reiterated that his bank’s economists expect a mild recession in the second half of this year.
If the Federal Reserve can slow inflation and keep unemployment around 4.5% or less, “that would be a great achievement,” he added.
