Bank of America (BAC) CEO Moynihan’s comments:
- Predicts a soft landing for the US economy.
- Notes a slowdown in consumer spending.
- Highlights that financial conditions are tightening.
- Commercial customers are not borrowing as much.
- Does not see massive consumer delinquencies
- Higher capital also will increase cost of doing business
Over the weekend JPMorgan Chase CEO DImon commented, saying:
- Expressed concerns about the unsettling and unpredictable geopolitical situations in the Middle East and Ukraine.
- Despite a strong U.S. economy with fiscal and monetary support, he considers these geopolitical matters among the most serious since 1938.
- He emphasized that the current geopolitical landscape is reshaping the world and its economy, impacting crucial aspects such as freedom, democracy, food, energy, and immigration.
Dimon has previously warned about the economic threat posed by heightened geopolitical tensions, predicting potential interest rate increases as high as 7%, a challenge not seen since World War II.
- He highlighted that the invasion of Ukraine is taken seriously by the United States and could affect global relationships until a resolution is reached.
Meanwhile, Blackrock CEO Larry Fink said:
- Geopolitical turbulence, including Israel-Hamas and Russia-Ukraine conflicts, is significantly influencing our lives.
- There is a rising sense of fear and decreasing hope globally.
- This fear could potentially lead to a weaker economy.
- Increased fear tends to result in reduced consumer spending and investment.
- Emphasized the importance of hope in addressing current global challenges.
Fink also noted a lack of hope in the economy during a speech at the Berlin Global Dialogue forum in September.