Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesBotsEarnCopy
Bank of America CEO Makes Critical Interest Rate Call to the Fed

Bank of America CEO Makes Critical Interest Rate Call to the Fed

BitcoinsistemiBitcoinsistemi2024/08/14 09:24
By:Mete Demiralp

Bank of America CEO Brian Moynihan called on the Fed to cut interest rates in light of recent developments.

Amid growing concerns about the direction of the U.S. economy, Bank of America CEO Brian Moynihan called on the Federal Reserve to lower interest rates as soon as possible.

The Fed must strike a delicate balance between controlling inflation and avoiding a recession, Moynihan said in a recent interview.

Recent market turmoil, including record swings in the VIX volatility index, has raised investor concerns. While the labor market remains strong, mixed economic data and weakening consumer confidence have triggered alarms. Moynihan’s call for a rate cut comes as analysts and investors grapple with the Fed’s ability to achieve a soft landing, where inflation returns to its 2% target without a significant economic downturn.

“The economy is slowing down, so we have to be careful,” Moynihan warned, adding: “We have to be careful not to try to be so perfect that we end up in a recession.” Despite the cautious tone, Bank of America analysts are not predicting a recession this year, according to Moynihan.

The CEO also noted the potential impact of the Fed's decisions on consumer confidence, warning that if the central bank delays rate cuts, it could further erode consumer confidence.

Related News If Kamala Harris is Elected, Will It Be Positive or Negative for Bitcoin and Cryptocurrencies? Here are the Hidden Details

All eyes are now on this week’s inflation data; the July consumer price index (CPI) report is expected to have a significant impact on the Fed’s next move. While the market expects a September rate cut, there is uncertainty over whether the Fed will cut by 25 basis points or a more aggressive 50 basis points.

Chris Larkin, director of trading and investment management at Morgan Stanley E-Trade, noted the critical timing of the inflation data. “Investors are looking for data that falls into a ‘sweet spot’ that is cool enough to not call into question the possibility of a September rate cut, but warm enough to calm the recession fears that have been plaguing markets lately,” Larkin said.

Analysts expect the CPI to increase by 0.2% on a monthly basis and 3.2% on an annual basis in July, above the Fed's 2% target.

*This is not investment advice.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

How Elon Musk’s Starlink is cashing in on Trump’s tariff talks

Share link:In this post: Trump’s steep tariffs have prompted countries such as Lesotho to fast-track Starlink licenses as a gesture of goodwill toward the U.S. U.S. diplomats have quietly urged regulators worldwide to speed Starlink approvals during trade talks. By leveraging tariff threats, Washington is steering markets to American satellite services before Chinese competitors can move in.

Cryptopolitan2025/05/08 09:45

UK becomes the first country to make a trade deal with Trump

Share link:In this post: Trump will announce a trade deal with the UK on Thursday from the Oval Office. The deal is the first since Trump imposed global tariffs earlier this year. Details are unclear, but it likely covers cars, tech taxes, and farm goods.

Cryptopolitan2025/05/08 09:45

Governor Hobbs greenlights Arizona’s Bitcoin reserve fund after signing HB-2749 into law

Share link:In this post: Arizona Governor Katie Hobbs signed a bill into law allowing the U.S. state to keep unclaimed crypto and establish a ‘Bitcoin Reserve Fund’ not using taxpayers’ funds. House Bill 2749 will not allow investment but will transfer unclaimed assets, airdrops, and staking rewards into a reserve, creating AZ’s first crypto reserve. Earlier, Hobbs vetoed Senate Bill 1025, which would have allowed the state to invest up to 10% of treasury and pension assets in digital assets.

Cryptopolitan2025/05/08 09:45
Governor Hobbs greenlights Arizona’s Bitcoin reserve fund after signing HB-2749 into law