BofA CEO says the strong American consumer is one of the Fed’s biggest obstacles

BofA CEO says the strong American consumer is one of the Fed’s biggest obstacles

Summary : The American consumer is still strong despite roaring inflation, and that will pose a challenge to the Federal Reserve’s mission to tamp down inflation, Bank of America CEO Brian Moynihan told CNBC’s Jim Cramer on Wednesday.

“One of the toughest jobs they have is the American consumer is still in pretty good shape,” Moynihan said in an interview on “Mad Money.”

Moynihan’s comments come after the Federal Reserve raised interest rates by 0.75 percentage point on Wednesday afternoon and indicated it could take a softer approach with future rate hikes, though Chair Jerome Powell left the door open about the next move. Median-income earners who had around $3,500 in their accounts pre-pandemic have about $13,000 now, and their cash flow is still positive, though under pressure due to inflation, according to Moynihan.

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