Economic Warning: Bank of America Anticipates Gentle Downturn in Coming Quarters
Bank of America is predicting a mild recession coming our way later this year. In an interview on CBS “Face the Nation,” CEO Brian Moynihan shared the bank’s forecast and shed light on the factors behind it.
Moynihan explained that the recession would be a consequence of the U.S. Federal Reserve’s efforts to tackle inflation by tightening its policies. This move is expected to push unemployment up to 4% and slow down consumer spending, according to Bank of America’s data.
While some economists, like Peter Schiff, are painting a gloomier picture of a potential depression, Moynihan’s outlook aligns with the Federal Reserve’s own predictions of an economic hit in the coming months.
In light of the anticipated economic slowdown, Moynihan revealed that Bank of America has scaled back its hiring process. The bank has experienced a decline in attrition, leading to a reduced need for new hires. However, Moynihan emphasized that the bank is not planning any layoffs.
A survey conducted by Bank of America indicates that its customers are bracing themselves for the possibility of a recession. Many are seeking refuge in cash and turning away from other investment options.
Clever Robot News Desk 7th June 2023
Related Article
