Bank of America CEO Brian Moynihan Strong consumer spending so far this year means Fed It may block its benchmark interest rate.
Moynihan told CNBC’s that the bank’s retail customers spent about 6% of the money in the first 40 days of the year. Leslie Picker. He noted that this rate was the acceleration of spending growth in the last three months of last year.
“That’s driving the price firm and the demand firm,” Moynihan said. “The activity you’re seeing shows that we might be in a period of time when we’re going to stay… they’ve been a while and it’s settled until this stage. ”
Bureau of Labor Statistics Report Earlier Wednesday, the U.S. consumer price index grew faster than expected Recalibration Rate expectations. The Fed began a relief cycle in September, lowering rates for the first time since the 2020 pandemic, but central banks are believed to be limited in how far they can be cut due to stubborn inflation.
“Interest rates are restrictive, but we have made insufficient inflation progress,” Moynihan said.
Bank of America research analysts do not expect to lower interest rates in the near future due to rising inflation, he added.
