Home » Economy » Bank of America CEO sees 'mild recession' in 2023 and is preparing for worse
Bank of America CEO sees 'mild recession' in 2023 and is preparing for worse
Recession is the ‘cure’ to inflationary pressure, higher interest rates: Luke Lloyd
Economist Steve Moore and Strategic Wealth Partners investment strategist Luke Lloyd discuss if the Fed will keep raising rates after annual inflation slowed for the sixth straight month on ‘Cavuto: Coast to Coast.’
Bank of America CEO Brian Moynihan said Friday the bank is preparing for a potential recession this year, including the possibility of a sharper downturn where unemployment climbs rapidly.
"Our baseline scenario contemplates a mild recession," he said during a call with investors. "But we also add to that a downside scenario, and what this results in is 95% of our reserve methodology is weighted toward a recessionary environment in 2023."
In the case of a more severe recession, Moynihan said the second-largest U.S. bank anticipates the jobless rate will climb to 5.5% in 2023 and remain at 5% or higher through 2024.
US ECONOMY FACES TURBULENT 2023 AS RECESSION FEARS GROW