Bank of America CEO Brian Moynihan told CNBC’s Jim Cramer on Tuesday that Americans are spending vigorously even as inflation continues to roil the economy.
“In the month of March 22 compared to March 21, consumers spent … about 13% more than last year,” Moynihan said in an interview with Mad Money on Tuesday.
“But importantly, that figure has moved back up to 18% in the first few weeks of April, suggesting faster consumer spending,” he added.
Consumer prices rose 8.5% yoy in March, revealing jumps in the price of everyday items not seen since the 1970s and early 80s. The producer price index recorded an increase of 11.2% in March compared to the previous year.
Moynihan said consumers have been topping up their bank accounts since before the pandemic, which has increased their spending. He added that while some investors would take the “not fight the Fed” approach, he had a different opinion.
“Don’t fight the US consumers. They are a very powerful force and you can see that they are very healthy. Their loan balances are low, they have a lot of borrowing capacity and they have a lot of purchasing power,” he said.
Bank of America beat Wall Street expectations for earnings and earnings in its first-quarter financial results released Monday. Shares rose 3.4% on the day.
Bank of America shares rose 1.85% on Tuesday.
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