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Financial institution of America CEO says spending is wholesome regardless of roaring inflation

Bank of America CEO Brian Moynihan advised CNBC’s Jim Cramer on Tuesday that People are spending heartily, at the same time as inflation continues to roil the economic system.

“Within the month of March ’22 versus March ’21, the patron … spent about 13% greater than they did final yr,” Moynihan stated Tuesday in an interview on “Mad Money.” 

“However importantly, within the first couple weeks in April, that quantity’s moved again to 18%, indicating sooner spending in shoppers,” he added.

Shopper costs increased 8.5% year-over-year in March, revealing value jumps for on a regular basis objects not seen for the reason that Nineteen Seventies and early ’80s. The producer value index showed an 11.2% increase in March from the yr prior.

Moynihan stated that customers have bulked up their financial institution accounts since pre-pandemic instances, driving their elevated spending. He added that whereas some traders would possibly tackle an method of ‘do not battle the Fed,’ he has a unique take.

“Do not battle the U.S. shopper. They’re a really sturdy pressure and you’ll see them very wholesome. Their mortgage balances are down, they’ve loads of borrowing capability they usually have loads of spending capability,” he stated.

Financial institution of America beat Wall Street expectations on income and earnings in first-quarter monetary outcomes posted Monday. Shares climbed 3.4% the identical day.

Shares of Financial institution of America climbed 1.85% on Tuesday.

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