Bank of America Corp.
What Happened: Moynihan's comments came during an interview with Bloomberg TV in Australia, where Bank of America is celebrating 60 years of operations in the country. He emphasized the need for a balanced approach to monetary policy, suggesting that the Fed should be careful not to reduce rates too quickly or too drastically.
The Bank of America CEO said there is a danger that "they go too fast or too slow and that risk is higher now than it was six months ago," Moynihan said.
Moynihan said that the Fed was "late to the game" when deciding to begin cutting rates and now they should make sure not to move lower too quickly.
Moynihan told Bloomberg he expects the Fed to cut rates by an additional 50 basis points before the end of the year and expects four more cuts of 25 basis points each spread evenly during 2025. Such a scenario would bring the terminal rate to 3.25% and Moynihan sees inflation dipping to 2.3% into 2025 and 2026 in that rate environment.
The CEO said last week that the bank expects a "no landing" scenario for the U.S. with economic growth remaining strong and avoiding a recession.
"With an unemployment rate at 4% and wage growth at 5%, it's hard for an economist to convince the world there's going to be a recession," he said.
BAC Price Action: According to Benzinga Pro, Bank of America shares are down 0.3% to $42.17 at the time of publication Wednesday.
