Bank of America CEO Brian Moynihan recently emphasized the need for the Federal Reserve to lower interest rates to prevent an economic downturn. Speaking on CBS News’ “Face the Nation,” Moynihan highlighted a noticeable slowdown in consumer spending, which grew by just 3% year-over-year in July and August, half the pace seen last year.
Moynihan noted that while consumers still have money in their accounts, they’re increasingly dipping into their savings. He urged the Fed to adopt a more accommodating monetary policy, warning that maintaining high rates for too long could lead to a recession. “We’ve won the war on inflation,” he stated, adding that although inflation hasn’t fully subsided, pushing too hard could harm the economy.
Defending the Fed’s independence amidst recent political commentary, Moynihan stressed that central banks operating without political interference tend to perform better. He concluded by advocating for the Fed to carefully consider all advice while maintaining its autonomy in managing economic policy.