Strong consumer spending and economic data show that Fed needs to start raising interest rates, BofA chief said.
Moynihan points to the continued strength of consumer spending despite four-decade-high inflation and worries about the economy and the pandemic. Spending on the bank's credit and debit cards in January was up 17% from a year earlier. That's despite January typically being a slower month after the frenzy of the holiday shopping season.
Moynihan spoke with the Associated Press about the data, as well as his thoughts on inflation and the Federal Reserve's coming interest rate hikes. The interview has been edited for clarity and length.Brian Moynihan: So the narrative we've been hearing is that consumer spending was up substantially in the fourth quarter and it appears like that trend is going to continue.
Consumer account balances are still building. That means those higher wages have been a net positive even with their spending rising. On the other hand, they're not doing it through leverage. Look at credit card balances. We're still 15% behind where we were pre-pandemic and if you look at the payment rates on those credit card balances, they are still running at a very high rate. That to me says consumers are not taking on debt to keep this spending up.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
Fed Bans Senior Officials From Cryptocurrency Investing – Regulation Bitcoin NewsThe Federal Reserve has banned its senior officials from investing in cryptocurrency. “Officials covered by the new rules will have 12 months from the effective date of the rules to dispose of all impermissible holdings,” said the Federal Open Market Committee.
Consulte Mais informação »
Housing less affordable as mortgage rates rise in anticipation of Fed actionRising mortgage rates are making buying a home less affordable, but demand is still booming as people hope to make a purchase before the Federal Reserve hikes interest rates.
Consulte Mais informação »
Central bank digital currencies increase need for independent crypto, says Coindesk's ParkerEmily Parker, Coindesk executive director, joins 'Power Lunch' to discuss the difference between cryptocurrencies and central bank digital currencies, and what Parker believes broader cryptocurrency holders need to know.
Consulte Mais informação »
World Bank prepares to disburse up to $350 million to UkraineWorld Bank chief underlined that the group will continue to support Kiev mid and long-term while separately Poland said that it is ready to supply defensive weapons to Ukraine amid Russia standoff.
Consulte Mais informação »
World Bank prepares $350M to allocate to UkraineThe World Bank said it was preparing a $350 million disbursement to Ukraine to be considered by the group's board by the end of March.
Consulte Mais informação »
In latest Zelle scam, Wells Fargo customers lose thousands after fraudsters pose as bank employeesThe scammers are able to 'spoof' the caller ID of the bank, and even use the names of real bank employees.
Consulte Mais informação »