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BofA CEO: Inflation Will Hold, But Consumers Will Spend

The executive director of Bank of America Corp., Brian Moynihan, joined other financial industry leaders, such as the CEO of Morgan Stanley, James Gorman, and John Waldron, of Goldman Sachs Group Inc., in forecasting that inflation It will remain.

“Inflation is clearly not temporary,” Moynihan said in an interview Thursday on Bloomberg Television. “The Fed is beginning to signal that it is time for them to move,” as the path out of the COVID-19 pandemic “is more assured,” he noted.

Moynihan’s comments follow concerns expressed Wednesday by Goldman Chairman Waldron, who said inflation “is not transitory.” Gorman noted earlier Thursday that “the money is too free and available right now.” Recent inflation, driven in part by worker shortages and rising wages, has made people fear that “it’s more permanent,” and the way to tackle the problem “is to start working on it,” Moynihan said. .

The CEO of Bank of America also pointed to bottlenecks in the supply chain, which can cause problems when buying goods in the face of the holidays, although they should not curb consumer spending.

“The question is, ‘Can we get the products into the country for them to buy?'” Moynihan said in the television interview with David Westin of Bloomberg. Consumers have the resources to buy goods, although they may have to give away images rather than tangible items or spend more on experiences. Purchases can be postponed if the problem continues, he said.

“We have to get the supply chain in order” to ensure that next year is better than if the problem “persists,” Moynihan said.

His comments came after Charlotte, North Carolina-based Bank of America reported that third-quarter earnings beat analyst estimates, driven by record advisory fees amid a surge in mergers and acquisitions. and an increase in income from stock trading. General income increased, while expenses showed little variation from the previous year.

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