Bank of America CEO still sees U.S. technical recession in 3rd quarter.
Bank of America Chief Executive Officer Brian Moynihan said on Tuesday the U.S. economy would reach a technical recession starting in the third quarter.
Bank of America is one of the Big Four banking institutions of the United States. It serves approximately 10.73% of all American bank deposits, in direct competition with JPMorgan Chase, Citigroup, and Wells Fargo.
On Tuesday Bank CEO Brian Moynihan told The Financial Review’s Business Summit in Sydney a U.S. recession would not be deep and the bank forecast interest rates would start falling in the second quarter of 2024.
The bank expects three quarters of negative U.S. growth led by a corporate slowdown, with the consumer sector in good shape, he said.
“Our base projection is for a recession to occur in the U.S. economy beginning in the third quarter of 2023, occur through the fourth quarter of 2023 and into the first quarter of 2024,” Moynihan said.
The bank, he said, predicted the quarterly contractions would range between 0.5% and 1%.
“It’s a very slight recession in the scheme of things. I don’t think you’ll see a deep recession,” he said.
“In our view that is based on a corporate side or a commercial side slowdown, not a consumer side slowdown.”
