Bank of America CEO Brian Moynihan says both consumers and businesses are ‘slowing things down’—in fact, they’re acting like its 2016, a period of ‘very low growth’
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Bank of America CEO Brian Moynihan says consumers and commercial businesses are slowing down their spending. While consumers are still spending on experiences, they are consciously pulling back on day-to-day purchases such as groceries. On the commercial side, spending is still happening but at a slower pace. Moynihan compared the current behavior of consumers and businesses to the mid-to-late-2010s, a period of low growth and low inflation. Despite the high inflation in 2024, people may be spending less on general purchases and instead splurging on experiences. Moynihan emphasized the importance of keeping consumers in the game for the U.S. economy. He also noted that businesses are being less aggressive in their spending due to higher borrowing costs. However, there are no signs of stress in credit risk ratings on the consumer or commercial side. Moynihan has previously warned the Fed about pushing consumers too hard and crippling the economy. Overall, consumers and businesses are being cautious and slowing down their spending, but without significant negative impacts.

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https://fortune.com/2024/05/31/bank-of-america-ceo-brian-moynihan-consumers-businesses-low-growth-economy/