Economy

Bank of America CEO Discusses US Economy, Stresses Federal Reserve Independence

Illustration for: Bank of America CEO Discusses US Economy, Stresses Federal Reserve Independence
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Dec 28, 2025

THE BARE STORY

In an interview filmed on Dec. 17, Bank of America CEO Brian Moynihan commented on the state of the U.S. economy, the Federal Reserve, and bank policies. According to Moynihan, consumer spending remains "reasonably solid," with a growth rate of 4.25% to 4.5% year-over-year through early December. He attributed low consumer sentiment to memories of past inflation rather than current spending habits.

Moynihan stated that his team had raised its 2026 economic growth forecast to 2.4% and that the biggest risk to the economy is a potential slowdown in consumer spending. He asserted that the trade situation is de-escalating, though he also described the business community's initial reaction to tariffs enacted by President Trump as a "shock." Moynihan also claimed the primary concern for small businesses has shifted from tariffs to labor availability, which he connected to a need for clear immigration policies.

A key point of discussion was the Federal Reserve. Moynihan asserted that the central bank must remain independent, claiming that "the market will punish people" if that independence is compromised. He also stated there is "too much fascination" with the Federal Reserve.

Responding to a Trump administration report on bank practices, Moynihan said Bank of America does not close customer accounts for political or religious reasons and has clarified its policies to be more risk-based. He attributed some past closures to outdated regulations and reputational risk assessments, a factor he claimed federal bankers have since taken "off the table." He described the bank's current relationship with the White House on the matter as "copacetic."

Same Facts. Different Perspectives.

Two AI models. Two viewpoints. One factual foundation.

Perspective by Claude

• The U.S. economy is performing well, driven by solid consumer spending. Bank of America CEO Brian Moynihan reported that consumer spending grew at a rate of 4.25% to 4.5% year-over-year into early December. He stated that his team has raised its economic growth forecast for 2026 to 2.4%, attributing low consumer sentiment to memories of past inflation rather than current economic realities.

• The independence of the Federal Reserve is essential for market stability. Moynihan asserted that the central bank must remain independent from political influence, warning that "the market will punish people" if its autonomy is compromised. He also suggested there is an excessive focus on the Federal Reserve's actions among the public and media.

• Bank account closures are based on risk management, not political beliefs. Responding to a government report, the CEO clarified that his bank does not close customer accounts for political or religious reasons. He explained that policies have been updated to be more risk-based and that past closures were sometimes due to outdated regulations and reputational risk assessments that are no longer a factor.

How it may affect me

As a U.S. reader:

• The economy's health may depend on continued consumer spending. A slowdown in this spending is viewed as the main economic risk.

• Political interference with the Federal Reserve could lead to market instability, potentially affecting personal investments and the cost of borrowing.

• Labor shortages at small businesses, linked to federal immigration policy, may affect the availability or cost of local goods and services.

• Following government scrutiny, bank policies for account closures are now more risk-based, reducing the chance of closures due to factors like reputational risk.

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