Bank of America CEO Predicts No Recession, Foresees 3% Consumer Spending Growth
Bank of America CEO Brian Moynihan said the U.S. is set to avoid a recession in 2026 and projects consumer spending will rise 3% this year, driven by sustained wage gains. He highlighted that inflation is easing back to 2%, underpinning expectations for mid-single-digit loan growth and stronger fee income.
1. CEO’s Recession Outlook
Brian Moynihan said the U.S. economy will sidestep a recession in 2026, attributing the resilience to a strong labor market with low unemployment and continued corporate investment.
2. Consumer Spending Forecast
Moynihan projects consumer spending to increase by 3% this year, citing robust wage gains and elevated household savings balances as key drivers supporting retail and card fee growth.
3. Inflation Commentary
He noted that inflation pressures have eased toward the Federal Reserve’s 2% target, which should lower funding costs and bolster demand for both consumer and commercial loans.
4. Implications for Bank Performance
This optimistic outlook underpins expectations for mid-single-digit loan growth and stronger fee income, which could boost net interest margin and trading revenues in the coming quarters.