ICYMI: Bank of America CEO says “Everything points to a relatively mild recession”

Bank of America CEO Brian Moynihan was speaking during the bank’s quarterly earnings call on Tuesday. US time:

• “Everything points to a relatively mild recession given the amount of stimulus that was paid to people and the money they have left over,”
• “At the end of the day, we don’t see the activity on the consumer side slowing at a pace that would indicate that, but we would see commercial customers are being more careful.”
• said that BoA is forecasting US GDP will contract between 0.5% to 1% in the next three quarters

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The background to this is that BoA analysts have been forecasting a recession for more than a year, citing high inflation and Federal Reserve aggressive rate hikes in response.

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Also on Tuesday via the Goldman Sachs earnings call:

• ICYMI – Goldman Sachs says there is a higher risk of credit contractions

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Fed Funds & recessions:

This article was written by Eamonn Sheridan at www.forexlive.com.