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Bank of America CEO Brian Moynihan warned that American consumers could be disappointed if the Federal Reserve does not start cutting interest rates in the near future.
by Historian
During an interview with CBS, Moynihan noted that although the Fed has kept its benchmark interest rate between 5.25% and 5.50% for more than a year, there is a possibility of cutting it in September if inflation continues to decline.
Interest Rates: What Does Bank of America CEO Say?
Moynihan expressed concern about the long-term impact of higher interest rates, noting that if consumers see that interest rates will not be reduced soon, they may become pessimistic, which could negatively impact consumption and the economy as a whole.
He also stressed that once consumer sentiment turns negative, it is difficult to reverse. “They have told people that they probably won’t raise interest rates, but if they don’t start cutting them relatively soon, that could depress the American consumer,” he warned.
What did Bank of America's Brian Moynihan say about the independence of the Federal Reserve?
Regarding the independence of the Federal Reserve, Moynihan defended its independence, noting that economies that allow their central banks to operate freely tend to perform better than those that do not respect this independence.
“If you look around the world’s economies and see where central banks are independent and operate freely, they tend to perform better than those that aren’t,” Bank of America’s face said firmly.
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