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Bank of America CEO Brian Moynihan said over the weekend that the bank’s economists no longer believe the U.S. is heading for a recession.
“Bank of America Research is no longer predicting a recession,” Moynihan told CBS’ “Face the Nation.”
Bank of America CEO Brian Moynihan speaks on FOX Business Network’s “Mornings With Maria” on July 27, 2023. (Photo: John Lampalski/Getty Images/Getty Images)
Bank of America’s chief executive said that at this time last year, the bank’s analyst team had predicted the economy would fall into a recession – generally defined as two consecutive quarters of declining gross domestic product – but that fears have now faded.
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“They’ve said there’s not going to be a recession this year,” Moynihan said. “They’re basically saying we’re going to get to a 2 percent, 1.5 percent growth rate over the next six quarters, plus or minus that growth rate.”
Brian Moynihan, CEO of Bank of America Research, says there are no longer any signs the U.S. is heading for a recession in the near future. (Davis Turner/Getty Images/Getty Images)
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| Blood alcohol content | Bank of America | 38.28 | +0.07 |
+0.18% |
The bank doesn’t foresee a recession in the near future, but other banks take the opposite view.
Economists at JPMorgan Chase warned last week that there is a growing chance the U.S. will fall into recession this year.
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In an analyst note, JPMorgan economists led by Bruce Kassman raised the chance of a recession this year to 35% from 25% because labor market pressures are easing.
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“US wage inflation is slowing in a way not seen in other developed countries. [developed market] “Easing labor market conditions increase our confidence that services price inflation will decline and that the Fed’s current policy stance is containment,” they wrote.
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JPMorgan analysts still see a 45% chance of a recession happening in the second half of 2025.
FOX Business’ Megan Henney contributed to this report.
