Bank of America CEO Brian Moynihan raised the bank's growth forecast for the US economy to 2.4% in 2026, citing expected impacts from tax legislation and business investments, while cautioning that consumer spending patterns and geopolitical risks could undermine projections.
What Happened: Growth Forecast
Moynihan told CBS News the bank revised its 2026 economic growth estimate upward from 1.5% four months ago to 2.4%, attributing the increase to anticipated stimulus from tax legislation and ongoing investments.
"If the companies of America employ people and pay them a little bit more, they will spend. And the economy in the US will be fine," Moynihan said.
The chairman outlined employment levels and wage growth as critical factors supporting economic expansion. He noted stimulus from the tax act and new investments should sustain momentum through 2026.
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Why It Matters: Economic Risks
Moynihan identified three primary threats to growth projections. Consumer spending represents the first concern, as reduced household expenditures in 2026 would directly slow economic activity, though current data shows no signs of weakening demand.
Geopolitical conflicts and potential market shocks from wars constitute the second risk category.
Cyber events and similar disruptions round out the threat assessment, Moynihan said.
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