Bank of America no longer predicting recession, CEO says
CEO Brian Moynihan says Bank of America's economists are now forecasting several quarters of increased growth
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Bank of America's economists no longer see the U.S. entering a recession, CEO Brian Moynihan said over the weekend.
"Bank of America Research does not have any recession predicted anymore," Moynihan told CBS’ "Face the Nation."
Bank of America CEO Brian Moynihan speaks during "Mornings With Maria" at FOX Business Network on July 27, 2023. (Photo by John Lamparski/Getty Images / Getty Images)
The Bank of America boss said that at this time last year, the bank's team of analysts expected the economy to slide into a recession – generally defined as a decline in gross domestic product for two consecutive quarters – but now those concerns have dissipated.
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"This year we talked about now there's no recession," Moynihan said. "And basically they say we go to 2% growth, to one and a half percent growth over the next six quarters and kind of bump along at that growth rate, plus or minus."
Bank of America Research no longer sees signs of a U.S. recession in the near future, CEO Brian Moynihan says. (Davis Turner/Getty Images / Getty Images)
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BAC | BANK OF AMERICA CORP. | 47.04 | -0.47 | -0.99% |
While the bank is no longer forecasting any chance of a recession in the near future, other see an opposite view.
JPMorgan Chase economists warned last week that the odds of the U.S. entering a recession this year have increased.
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In an analyst note, JPMorgan economists led by Bruce Kasman raised the odds of an economic downturn this year to 35%, up from their previous 25% estimate, citing easing labor market pressures.
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"U.S. wage inflation is now slowing in a manner not seen in other DM [developed market] economies," they wrote. "Easing labor market conditions increase confidence both that service price inflation will move lower and that the Fed's current policy stance is restrictive."
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JPMorgan's analysts still see a 45% chance of a recession in the second half of 2025.
FOX Business' Megan Henney contributed to this report.