People are watching the Federal Reserve and potential rate cut decisions too closely, said Bank of America CEO Brian Moynihan, and that’s a “huge constraint on economic growth.”
The potential for interest rate cuts this summer is dwindling, with Fed Chair Jerome Powell stating that recent data indicates that it will take longer than expected to garner the confidence needed to make a move. Moynihan said there are more indications of a stable economy than the Fed would make it seem, citing strong consumer spending, business earnings and low unemployment.
Bank of America researchers “say it takes about four years to wind out of inflation,” Monynihan said. “And so while the Fed has omnipotent power to make the decision, they don’t have the power to decide what the facts are.”
However, the CEO also said what many other bank leaders have said: “At the end of the day, our company will operate well in any environment.”
