(MT Newswires) -- Brian Moynihan, CEO of Bank of America, reports a significant increase in average savings and checking account balances, more than 40% higher than in 2019, which cuts across all income levels. This suggests strong consumer resilience.

The economy, according to Moynihan, is showing remarkable resilience. Initial forecasts of a recession have been revised, and the Bank of America team now anticipates economic growth of over 2% in the current quarter. However, this growth is slowing from a rate of 4-5% to around 2.5%, reflecting a return to average growth rather than rapid expansion.

Consumers play an anchoring role in the economy, offering the Federal Reserve the opportunity to maintain restrictive policies without damaging the economic recovery. However, the CEO warns that consumer spending could slow from 10% growth to 3-4%, requiring careful monitoring to avoid excessive tightening in the economy.

In the small business sector, Moynihan sees sustained activity, but with increased caution due to rising borrowing costs. Companies are more cautious about hiring and investing, despite solid profits. The US economy is described as globally dominant, attracting activity and investment.

With regard to mergers and acquisitions, he notes a certain hesitancy linked to political uncertainty and antitrust concerns, which can slow down transactions. Greater political clarity is needed to stimulate strategic risk-taking by companies.

Investment in technology plays a crucial role for Bank of America, which has reduced staff numbers while increasing deposits and transactions through digitisation and automation, keeping expenses constant despite growth.

Bloomberg videos