Bank of America CEO: US economy will normalize in 2023
Brian Moynihan predicts 4% growth in 2022 and said it's the Fed's 'job' to bring the economy back to pre-pandemic levels
Bank of America chairman and CEO Brian Moynihan on when the U.S. economy will fully recover from the COVID pandemic.
In an exclusive interview on "Mornings with Maria" Friday, Bank of America Chairman and CEO Brian Moynihan discussed when he believes the economy will normalize following the COVID pandemic recovery.
"Our experts have it [the economy] growing at 4% in 2022, but it starts to normalize in 2023," Moynihan told FOX Business’ Maria Bartiromo.
He believes that it’s up to the Federal Reserve to bring the economy back to pre-pandemic levels.
"That's the job, to get the economy back to normal after its recovery from the pandemic, that the Fed has to do now," he pointed out.
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Improving unemployment numbers signal to the Fed it’s time for interest rate hikes, he said.
"Unemployment’s down below 4%," he said. "Those numbers mean that the economy's fully recovered. That means the Fed has to normalize it."
He went on to say that Bank of America experts agree with the Fed’s four proposed rate hikes over 2022, helping the underlying economy get back to a normal growth rate.
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"For the U.S. economy for next year, that's normalizing the activity, which is important to stop this potential speculative aspects and things that go on when money is too loose," he noted.
Bank of America CEO Brian Moynihan speaks with Secretary John Kerry on June 10, 2021. (Chris Jackson - WPA Pool/Getty Images)
Amid looming policy changes, Moynihan said banks will serve as a "source of strength" for clients.
"We'll be around. The story changes, regulations change," Moynihan explained. "We adapt to them. It's what we in the industry have to do."
"I think people have to remember, no matter what the debate is about incremental changes and things like that, the core banking system of the United States is a pillar of strength," he continued.
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Bank of America Chairman and CEO Brian Moynihan, in a wide-ranging interview with Maria Bartiromo, discusses company earnings, the state of the economy and the Federal Reserve.
After Bank of America’s earnings topped profit estimates for Q4, the CEO expects the market to be up in 2022.
"And as the Fed slows it down and the economy slows down, by design, back to more normalized conditions, of course, the market's going to reflect that."