Wed Dec 31 12:00:00 UTC 2025: Here’s a summary of the interview, followed by a rewrite as a news article:

Summary:

In a recent interview on CBS’s “Face the Nation,” Bank of America CEO Brian Moynihan discussed the current state of the U.S. economy. Despite CBS polling suggesting Americans are struggling with affordability, Moynihan stated that overall spending is up, driven by growth across all income levels. He acknowledged the lingering impact of inflation on consumer sentiment, but emphasized that wages are growing and credit quality remains solid.

Moynihan identified the biggest risks to the economy as a potential slowdown in consumer spending and the impact of global conflicts. He also touched upon trade tensions, noting a potential de-escalation in trade wars, excluding China due to national security concerns. He addressed the challenges faced by small businesses, particularly regarding labor availability due to unsettled immigration policies.

Regarding AI, Moynihan highlighted Bank of America’s use of AI like Erica for customer service and predictive modeling, emphasizing the importance of data accuracy and controls. He downplayed concerns about AI leading to widespread job losses, suggesting it will primarily drive efficiency and growth.

He also discussed the housing market, attributing its weakness to higher interest rates and a shortage of housing supply. He advocated for increased building and permitting to stabilize prices. Finally, Moynihan addressed the future of Fannie and Freddie, emphasizing the importance of the government guarantee for maintaining affordable mortgage rates and the bank’s commitment to avoid political discrimination in banking services.

News Article:

Bank of America CEO: Consumer Spending Strong Despite Inflation Concerns

NEW YORK, NY – December 29, 2025 – Despite concerns about affordability highlighted in recent CBS polling, Bank of America CEO Brian Moynihan says consumer spending remains strong, with growth observed across all income brackets. In an interview aired on CBS’s “Face the Nation” on December 28, 2025, Moynihan pointed to a 4-4.5% increase in spending during the Thanksgiving weekend and the month of November compared to the previous year. The interview was filmed December 17, 2025.

“Spending is really solid, reasonably solid heading into the end of the year,” Moynihan stated. “People are spending, they have good credit quality, they are employed, and we can see wages growing.”

However, Moynihan acknowledged that inflation continues to weigh on consumer sentiment, despite wages catching up. He identified two primary risks to the economy in 2026: a potential slowdown in consumer spending and the destabilizing effects of ongoing global conflicts. He projects the U.S. economy will grow about 2.4% next year if consumer engagement remains stable.

Moynihan also addressed the impact of trade policies on small businesses, noting the initial shock of tariff increases. He suggested a potential de-escalation in trade wars, with the exception of China due to national security and technology concerns.

Artificial intelligence was another key topic, with Moynihan highlighting Bank of America’s use of AI-powered tools like Erica. He downplayed fears of widespread job losses, asserting that AI will primarily enhance efficiency and drive company growth.

Regarding the housing market, Moynihan cited higher interest rates and a shortage of housing supply as factors contributing to its current weakness. He recommended increasing building and streamlining permitting processes to stabilize prices and improve affordability.

Finally, Moynihan addressed the future of Fannie and Freddie, emphasizing the importance of the government guarantee for maintaining affordable mortgage rates. He defended the bank’s policies against allegations of political discrimination, stating Bank of America “banks everybody” and has taken the steps to make that clear.

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