Bank of America CEO says healthy spending despite soaring inflation
Bank of America CEO Brian Moynihan told CNBC’s Jim Cramer on Tuesday that Americans are spending honestly, even as inflation continues to weigh on the economy.
“In March ’22 compared to March 211, consumers … spent about 13% more than they did last year,” Moynihan said Tuesday in an interview on “Crazy money. ”
“But importantly, in the first few weeks of April, that number went back to 18 percent, indicating faster consumer spending,” he added.
Consumer prices increase 8.5% year-on-year in March, indicating price increases for everyday commodities not seen since the 1970s and early 80s. Producer price index showed an increase of 11.2% in March compared with the previous year.
Moynihan says consumers have been increasing their bank accounts since pre-pandemic times, driving their spending up. He added that while some investors may take a ‘don’t fight the Fed’ approach, he takes a different approach.
“Don’t be against the American consumer. They’re a very strong force and you can see they’re very healthy. Their balances are down, they’re more likely to borrow and they’re more likely to spend,” he said. speak.
Bank of America beat Wall Street’s expectations earnings and earnings in first-quarter financial results released Monday. Shares rose 3.4% on the same day.
Shares of Bank of America were up 1.85% on Tuesday.
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