Bank of America (BoA) does not expect a recession in the US economy this year and predicts that economic growth will continue at around 1.5% until the end of the year.
In a conference call with analysts, Bank CEO Brian Moynihan highlighted the improvement in the market environment in the last quarter, stating that this allowed BoA’s strong research team to maintain their prediction that there would be no recession in the US.
Moynihan noted that individual and corporate customers continue to spend, and that, particularly with the passage of the latest trade agreement and tax law, customers have developed clearer expectations about the future and are beginning to shape their behavior accordingly. He also noted that the Fed is not expected to cut interest rates this year, with the first cut unlikely to occur until early 2026.
Meanwhile, President Donald Trump called on the Fed to lower interest rates, arguing that inflation rates are low. In a statement on Truth Social Tuesday morning, Trump declared, “Consumer prices are low. Lower the Fed interest rate now!” In another post that same morning, he said the Fed should lower interest rates by 3 percentage points, adding, “Inflation is very low. Interest rates should be lowered by 3 percentage points. This would save a trillion dollars a year!”
*This is not investment advice.