Bank of America no longer predicting

Bank of America CEO Brian Moynihan announced that the bank no longer predicts a recession for the U.S. economy, noting a shift in sentiment from previous forecasts. While consumer spending growth has slowed to about 3%, it remains stable compared to pre-pandemic levels, with consumers gradually depleting their savings but still earning. Moynihan emphasized the importance of the Federal Reserve's approach to interest rates, warning that excessive caution could hinder economic recovery. In contrast, JPMorgan Chase has raised its recession odds for this year to 35%, citing easing labor market conditions. Bank of America anticipates two rate cuts by the Fed this year, likely in September and December, as part of its outlook for gradual economic growth. The differing views highlight ongoing debates among economists regarding the resilience of the U.S. economy amid inflation and high interest rates.