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Financial institution of America CEO Brian Moynihan and JPMorgan & Chase CEO Jamie Dimon each agree that the U.S. economic system is doing nicely and customers are in fine condition. “The customers principally have extra money of their accounts by multiples than they did pre-pandemic,” mentioned the Financial institution of America chief.
Financial institution of America’s CEO: US Financial system Is in ‘Fairly Good Form’
Financial institution of America CEO Brian Moynihan mentioned on the Institute of Worldwide Finance (IIF) annual membership assembly in Washington, D.C., final week that the U.S. economic system is in fine condition regardless of inflation, jittery markets, and worldwide tensions, Bloomberg reported.
Emphasizing that the Federal Reserve has to lift charges to decelerate inflation and act in opposition to the spending forces of U.S. customers, Moynihan was quoted as saying:
The hardest problem for the Fed is definitely probably the greatest issues concerning the U.S. economic system — is that it’s in fairly fine condition.
“The customers principally have extra money of their accounts by multiples than they did pre-pandemic,” the Financial institution of America chief added. “They’re incomes extra money. Their credit score high quality is as excessive because it’s ever been. They’ve extra extra capability.”
Throughout a convention name to debate Financial institution of America’s third-quarter outcomes Monday, Moynihan mentioned: “Analysts would possibly ponder whether the discuss of inflation, recession, and different components might [result] in slower spending progress. We simply don’t see [that] right here at Financial institution of America.”
He revealed that the financial institution’s clients proceed to spend freely. Their transaction volumes elevated 10% in September and the primary half of October from the earlier yr whereas the variety of transactions rose 6%. Furthermore, the Financial institution of America govt mentioned clients’ account balances are increased than earlier than the Covid pandemic struck in early 2020, suggesting that they have been in a superb place to proceed spending.
JPMorgan’s CEO: US Financial system Is ‘Doing Nicely’
The CEO of JPMorgan Chase & Co., Jamie Dimon, additionally believes that American customers are in fine condition and the U.S. economic system is doing nicely.
In an interview with CNBC on the JPM Techstars convention in London final week, the JPMorgan govt mentioned:
At the moment, proper now, the U.S. economic system is definitely nonetheless doing nicely. Shoppers have cash, they’re spending 10% greater than final yr, their stability sheets are in nice form.
Dimon added: “Sure, money owed have gone up somewhat bit, however not close to pre-Covid ranges. Subsequently, even when we go right into a recession, they’re going to be in significantly better form than in 2008 and 2009. Firms are in fine condition, credit score is superb.”
Nonetheless, the JPMorgan CEO has warned about an financial hurricane or one thing worse than a recession. He believes {that a} recession might hit the U.S. economic system in six months and the inventory market might simply drop one other 20%.
Do you agree with Financial institution of America CEO Brian Moynihan and JPMorgan CEO Jamie Dimon about customers and the U.S. economic system? Tell us within the feedback part beneath.
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