Bank of America and JPMorgan Say US Economy Is Doing Well, Consumers Are in Good Shape Despite Inflation – Economics Bitcoin News

Bank of America CEO Brian Moynihan and JPMorgan & Chase CEO Jamie Dimon both agree that the U.S. economy is doing well and consumers are in good shape. “The consumers basically have more money in their accounts by multiples than they did pre-pandemic,” said the Bank of America chief.

Bank of America’s CEO: US Economy Is in ‘Pretty Good Shape’

Bloomberg reports that Brian Moynihan, CEO of Bank of America, stated at last week’s Institute of International Finance annual member meeting in Washington, D.C., that the U.S. economic is still in good health despite international tensions, inflation, and jittery markets.

Moynihan stated that Moynihan must raise interest rates in order to reduce inflation and to counter the U.S. consumer spending.

The toughest challenge for the Fed is actually one of the best things about the U.S. economy — is that it’s in pretty good shape.

“The consumers basically have more money in their accounts by multiples than they did pre-pandemic,” the Bank of America chief added. “They’re earning more money. Their credit quality is as high as it’s ever been. They have more excess capacity.”

During a conference call to discuss Bank of America’s third-quarter results Monday, Moynihan said: “Analysts might wonder whether the talk of inflation, recession, and other factors could [result]Slower spending growth. We just don’t see [that] here at Bank of America.”

He revealed that the bank’s customers continue to spend freely. The bank’s transaction volume increased by 10% between September and October of the prior year, while transactions were up 6%. Moreover, the Bank of America executive said customers’ account balances are higher than before the Covid pandemic struck in early 2020, suggesting that they were in a good position to continue spending.

JPMorgan’s CEO: US Economy Is ‘Doing Well’

The CEO of JPMorgan Chase & Co., Jamie Dimon, also believes that American consumers are in good shape and the U.S. economy is doing well.

Interview with CNBC: JPMorgan’s executive at JPMTechstars in London, last week.

The U.S. economy continues to do well right now. Consumers have money, they’re spending 10% more than last year, their balance sheets are in great shape.

Dimon added: “Yes, debts have gone up a little bit, but not near pre-Covid levels. Therefore, even if we go into a recession, they’re going to be in much better shape than in 2008 and 2009. Companies are in good shape, credit is very good.”

However, JPMorgan’s CEO warned of an economic storm or worse than a slump. In six months, a recession is possible in the United States and stocks could drop as high as 20%.

Are you in agreement with Bank of America CEO Brian Moynihan or JPMorgan CEO Jamie Dimon regarding consumers and the U.S. Economy? Comment below.

Kevin Helms

Kevin, a student of Austrian Economics and evangelist since 2011, discovered Bitcoin. He is interested in Bitcoin security and open-source software, network effects, and the intersection of cryptography and economics.