Interest Rates to Hold Steady, Says BofA CEO

Bank of America Corp. Chairman and CEO Brian Moynihan shared insights with CNBC, indicating a belief that the United States Federal Reserve will maintain current interest rates for the foreseeable future. This stance comes as consumer spending shows a significant uptick, with Moynihan highlighting a 6% increase in spending by the bank's clients in the first 40 days of 2025 compared to the same period in 2024.

Consumer Spending Fuels Economic Firmness

Moynihan pointed out that this surge in spending is contributing to price and demand firmness across the market. Despite the restrictive nature of current rates, he noted that inflation progress remains insufficient, leading analysts to predict no immediate easing of monetary policy. This perspective is influenced by ongoing elevated inflation levels, suggesting a cautious approach from the Federal Reserve in the near term.