Consumers and businesses are wrestling with inflation and borrowing costs that remain higher than they are accustomed to.
Whether its households or small- to medium-sized businesses, Bank of America clients are slowing down the rate of purchases made for everything from hard goods to software, the bank's CEO, Brian Moynihan, said.
Consumer spending via card payments, checks and ATM withdrawals has grown about 3.5% this year to roughly $4 trillion, Moynihan said. That's a sharp slowdown from theReferring to consumers and businesses, Moynihan said:"Both of our customer bases that have a lot to do with how the American economy runs are saying, 'You know what? I'm being careful, slowing things down.'"
Nearly a year after the last Federal Reserve rate increase, consumers and businesses are wrestling with inflation and borrowing costs thatthan they are accustomed to. The Fed began efforts to tame inflation by hiking its benchmark rate starting in March 2022, hoping it could slow the economy without tipping it into recession.Many economists believe the Fed is on track to pull off that feat, which has helped the stock market reach new highs this year.
"We've got to keep the consumer in the game in the U.S. economy, because such a big part of it," Moynihan said."They're getting a little more tenuous, and that is due to everything going on around them."
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