“The reality is there’s going to be a slowdown, but we just got to be positive,” Moynihan said. — Bloomberg
NEW YORK: Bank of America Corp chief executive Brian Moynihan says there are signs of the US economy slowing, but his firm still expects a soft landing rather than a recession.
“The reality is there’s going to be a slowdown, but we just got to be positive,” Moynihan said on Tuesday at the Goldman Sachs US Financial Services Conference.
“Money is coming out of customer accounts and consumer spending has levelled out, so that’s all good news that the economy has normalised,” Moynihan said.
Moynihan’s remarks track with recent data points. US consumers have been pulling back on spending, particularly for big-ticket items, as inflation continues to linger and borrowing costs have stayed elevated.
Many economists also see spending holding up enough to avert a recession, but much of the outlook depends on the job market, which has been cooling in recent months.
With the Federal Reserve fighting inflation by raising interest rates, “we got to be careful we don’t win it by too much right now”, Moynihan said.
In the wide-ranging conversation, Moynihan also said Bank of America’s sales and trading unit is on track to be up in the low single digits in the final three months of the year.
The team, led by Jimmy DeMare, is on track for “probably the best fourth quarter we’ve ever had”, he said.
The investment-banking fee pool looks to be down 10% to 15% across Wall Street in the fourth quarter, Moynihan said.
Bank of America is expecting around US$1bil of fees, which would put the firm down by the low single digits, which would outperform the industry as it gains market share, Moynihan said.
The Charlotte, North Carolina-based financial services company sees more activity in the middle market, where the bank remains focused, Moynihan said, adding that the deal pipeline remains “very full”. — Bloomberg
