Bank of America Chief Executive Brian Moynihan has accused the Biden administration of being fixated on whether the economy is in recession.
He is one of the world's largest financial institutions He Moynihan says the White House's semantic Regardless of his game, the current economy is causing a real financial burden on people said.
"Recession is a word. Whether or not we are in a recession really doesn't matter. It's what people who are going through this feel."he told the Associated Press[8] at the Bank of America Tower in Midtown Manhattan.
Politicians have been arguing over whether the US is facing a recession ahead of the 2022 midterm elections. President Joe Biden[11] argued on his July 28[12] that the United States was not in recession despite new data showing that GDP had contracted for his second consecutive quarter,[12] 13} meets the long-accepted definition of recession.
Meanwhile, Republican critics say excess federal spending has caused the worst inflation since 1981,reaching 9.1% annualized in June,Consumer Confidence Is Declining Despite Strong Jobs Data in India.
U.S. inflationary pressures eased There is little evidence,” officials found late last month, prompting interest rate hikesand more rate hikes expected soon.
Moynihan did not say whether the US economy was in recession, saying it would have to be decided by "a lot of people in Cambridge, Massachusetts." Decide when the recession officially begins and when it ends.
His two biggest factors directly affecting Americans today are gas prices and rent, he said, Mr. Moynihan. Gasoline prices eventually fell below the national average of $4, but peaked above $5 in June, according to AAA.
Moynihan, who has been Bank of America's chief executive since 2010, was more worried about rents that don't fluctuate like gas.
"Gas prices are going down, but rents are going up, he said, by 10, 12, 15%. And rents could make him 40% of the income of these households. I don't know," Moynihan told his AP.
Rent accounts for about a third of the government's consumer price index, and inJuly he rose 8.5% year-on-year, while gasoline prices continued to fall.
"For the broad US consumer, we are concerned about rent increases as we enter the natural shift in rents (usually the fall of the school year)," he added.
Moynihan said the average American consumer is healthy and He said he still believes it should be. We can get through this uncertain economic time. Americans with fixed-rate mortgages are mostly fixed at low borrowing costs, he said. Credit card balances have surged, but remain a low percentage of household income.
"From the beginning of the year to date, we have not seen a deterioration in consumer behavior," he said. Americans aren't saving money at previous levels, but that's likely due to rising costs, he said.
The CEO added that companies raising workers' wages are also helping Americans live.
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