Bank of America CEO: Fed's Soft Landing Victory Signals Weakening Credit Conditions

Bank of America CEO Brian Moynihan believes that the Federal Reserve has successfully tamed inflation and achieved a soft landing, but pressures such as the strength of the US consumer may keep interest rates higher for longer. Moynihan stated that US consumers have slowed down and are spending at pre-pandemic rates, and he expects the Federal Reserve to raise interest rates once in November, followed by three rate cuts in 2024 and four in 2025. However, he cautioned that geopolitical risks and fighting inflation without political influence are concerns. Moynihan also expressed opposition to new bank capital requirements, citing potential negative impacts on American economic competitiveness.