Weekend – Bank of America forecast no US recession, Fed rate cuts in September & December

Bank of America CEO Brian Moynihan spoke on US TV over the weekend.

He had a warning for the Federal Open Market Committee (FOMC):

• the Fed is in a position they have to be careful that they don’t slow down too much

He was referring to sowing spending amongst consumers:

• Well, in our consumer base of 60 million customers spending every week, what you’re seeing is they’re spending at a rate of growth of this year over last year, for July and August so far, about 3%. That is half the rate it was last year at this time. And so the consumer has slowed down. They have money in their accounts, but they’re depleting a little bit. They’re employed, they’re earning money, but if you look at- they’ve really slowed down.

Analysts at BoA forecast no US recession, and 25bp interest cuts at both the September and December meetings.

Bank of America CEO Brian Moynihan

This article was written by Eamonn Sheridan at www.forexlive.com.