Bank of America CEO Forecasts Mild Economic Downturn in the US

During the Bank of America’s quarterly earnings call on Tuesday, CEO Brian Moynihan indicated that he foresees a relatively insignificant economic downturn in the United States as consumers continue to maintain stability. Moynihan attributed this projection to the stimulus payments that have been dispersed to individuals, leading to residual financial security. While commercial clients appear to be acting more cautiously, Moynihan’s research team at Bank of America has maintained a consistent prediction of a mild economic downturn despite the aggressive interest rate hikes by the Federal Reserve. Moynihan expects that there will be a contraction in annualized GDP of 0.5% to 1% within the next three quarters before recovering in positive growth.