Bank of America CEO Brian Moynihan told CNBC’s Jim Cramer on Tuesday that Americans are spending big even as inflation continues to plague the economy.
“In March 22 compared to March 21, the consumer…spent about 13% more than last year,” Moynihan said Tuesday in an interview on “Mad Money.”
“Most importantly, in the first two weeks of April, that figure fell back to 18%, indicating an acceleration in consumer spending,” he added.
Consumer prices rose 8.5% year-on-year in March, revealing price increases for everyday items not seen since the 1970s and early 1980s. Producer Price Index posted an 11.2% increase in March from a year earlier.
Moynihan said consumers have bloated their bank accounts since pre-pandemic times, leading to increased spending. He added that while some investors might take a “don’t fight the Fed” approach, he has a different approach.
“Don’t fight the American consumer. It’s a very powerful force and you can see them in very good health. Their loan balances are down, they have a great borrowing capacity and a great spending capacity” , did he declare.
Bank of America beat Wall Street earnings and earnings expectations in first-quarter financial results released Monday. Shares climbed 3.4% on the same day.
Bank of America shares climbed 1.85% on Tuesday.
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