Bank of America CEO: US economy is on track for strong growth

Brian Moynihan, CEO of Bank of America (BofA), spoke to CNBC about the US economy. He stressed out that consumer spending remains strong despite mounting inflation anxiety. Although consumer sentiment in the country has fallen to a three-year low, people are still actively reaching into their pockets. However, many are shifting their spending from goods to services.

The Bank's governor expects economic growth to slow down to 2%, hit by trade restrictions. According to Moynihan, the tariffs imposed by President Trump will shave around 0.4% off GDP in the short run. Once the economy has adjusted, this effect is likely to smooth out. That's how he sees this working out.

The BofA’s head anticipates that the Fed will uphold its current interest rate strategy until 2026, asserting that it would be unwise to cut rates while the economy is expanding at 2%.