Bank of America CEO Predicts Soft Landing for US Economy Amid Slowdown in Consumer Spending

Moynihan Cites Lower Borrowing Rates and Rising Mortgage Prices as Key Factors, Estimates Inflation to Settle by 2025

Bank of America CEO Brian Moynihan believes the US economy is likely to experience a 'soft landing' wherein, despite a slowdown, the economy won't go into recession. This comes amid a significant slowdown in consumer spending.
The bank's research team anticipates an economic slowdown by mid-next year, with consumer spending slowing to 4%-4.5% by October, about half the pace seen earlier in the year.
Moynihan highlighted lower borrowing rates and rising mortgage prices as key factors affecting consumer behavior. He expects one more rate hike likely followed by a reduction in the second half of next year.
He also touched on environmental, social, and governance issues, emphasizing that Bank of America has been criticized for both funding large energy companies and being a significant renewable energy lender.
Concerning inflation, the Bank of America CEO estimates it will take until the end of 2025 to bring the inflation rate down to the low 2% range.