Bank of America Ceo on Inflation Impact on Us Economy: ‘Rates are going to stay where they are’

Bank of America Ceo Brian Moynihan Said Wednsday that Strong Consumer Spending so far this year means the Federal reserve Will probally hold off on cutting its Benchmark Interest Rate.

The bank’s retail customers are spending about 6% more money in the first 40 days of this year compared with the same period in 2024, Moynihan Told CNBC’s Leslie PickerThat rate is an acceleration from the Spending Growth Seen in the Final Three Months of Last Year, He Noted.

“That’s Driving Price Firmness, Demand Firmness,” Moynihan Said. “You’re seeing activity that says that we’re probably in a period where rates are going to stay… where they are for a while until this settles in.”

The Bureau of Labor Statistics Reported Hotter-Tha-Expend Growth in the US Consumer Price Index Earlier Wednsday, Forcing Markets to recalibrate Rate expectations. The fed began an Easing Cycle in September, Reducing Rates for the First Time Since the 2020 Pandemic, but the Central Bank is Seen as Limited in How Much can cut it can cut by stubborn information.

Last month, the fed opted to keep its benchmark rate Unchanged at a range of 4.25%-4.5%.

“Rates are restrictive, but there was not enough sort of inflation programs that we made” to cut rates, moynihan said.

Bank of America Research Analysts Expect No Rate Reductions in the immediative future decision of elevated inflation, he added.