In a recent interview on CBS News’ “Face the Nation,” Bank of America CEO Brian Moynihan urged the Federal Reserve to consider lowering interest rates to avert a potential economic downturn.
Moynihan pointed to a noticeable slowdown in consumer spending growth, which he sees as a concerning trend.
“In our consumer base of 60 million customers who spend weekly, we’re seeing a growth rate of about 3% this year over last year for July and August so far. That’s half the rate we saw at this time last year,” Moynihan explained during the CBS News interview on August 11.
He noted that while consumers still have money in their accounts, they are “depleting a little bit,” indicating that people are dipping into their savings to maintain their lifestyles, particularly during the summer months.
Moynihan also warned against keeping interest rates high for too long.
“We’ve won the battle against inflation; it has come down. It’s not yet at the level people want, but we need to be careful not to push for perfection and risk triggering a recession,” he cautioned.
He advocated for a more accommodative monetary policy, saying, “I think now is the time for the Fed to start being a bit more accommodating, easing the restrictions, and allowing the economy to cool off naturally.”
Moynihan added, “They’ve told people rates probably won’t go up, but if they don’t start bringing them down soon, it could dishearten the American consumer.”
When asked about political pressure on the Federal Reserve, especially following former President Donald Trump’s comments advocating for greater presidential control over the Fed, Moynihan defended the importance of the institution’s independence.
“If you look at global economies, you’ll see that those with independent and freely operating central banks tend to perform better than those without such independence,” he said.
Moynihan concluded by acknowledging that the Fed receives a wide range of advice, including his own. “A strong central bank has to take all that advice and process it,” he said, underscoring the need for the Fed to maintain its autonomy while navigating economic challenges.
.
#everyday_information #forex #option #Binary_Option #trading #trader #goldstocks #forextrader #fx_trade_time #fxttime #USDollar #euro #JPY #GBP #chfcurrency
#dubai #UAENews #ksasaudiarabia #Syrian #iraq #kuwait #jordan #morocco #Libya #tunisia #algerian #Egypt #qatar #lebanon
#كل_يوم_معلومه #فوركس #خيارات_ثنائيه #تداول_عملات #بورصه #ذهب #فوركس_تريد_تايم #اف_اكس_تريد_تايم #دولار #يورو
#دبي #امارات #السعوديه #سوريا #العراق #الكويت #الاردن #المغرب #ليبيا #تونس #الجزائر #مصر #قطر #لبنان
.
www.fxttime.com/trade