Executive director of the Bank of America Brian Moynihan unpacked the influence of the car tariff and the future of the economy moving forward to “counting the Claman”.
CEO of Bank of America Brian Moynihan Executed on new charges by President Donald Trump, as consumers respond to the tariff administration and expectations of the bank on interest rates.
The new measure that the President discovered on Wednesday will put 25% of tariffs on passenger vehicles, light trucks and some car parts imported to the USA
“I think the concept was not a surprise. It was in the campaign, there was talk of it, but the reality is coming now, so people start to adjust and try to figure out what it all means,” Moynihan said on Thursday on “counting Claman.”
President Trump announces new car tariffs
Bank of America analysts think that the new tariff will cause car prices to increase and buy vehicles to slow down, he told the host Liz Claman, noting, “This is what you see that it is reflected in the market.”
Executive director of the Bank of America Brian Moynihan appears during the panel session on the second day of the World Economic Forum (WeF) in Davos, Switzerland, January 18, 2023. (Stefan Wermuth / Bloomberg via Getty Images / Getty Images)
“When they think about it, it can add a quarter percent inflation. It can slow some growth in places like Japan because they export more to the United States, but overall, things are absorbed over time,” Moynihan said. “But until they realized, no one really knows it, and these are unprecedented water in terms of quantities and different pieces and similar things.”
Auto tariffs should take effect early next week, which indicated the latest levies on the import of other countries from Trump since he took over his duty in January.
President Donald Trump gestures during the event of a month of women’s history at the White House in Washington, DC, Wednesday. (Reuters / Carlos Barria / Reuters)
“If we go back and talk about our team, given all the tariff dialogue and try to consider it, our Bank of America research team … They have growth in the US, a positive growth of 2%, one and a half in the first few quarters and moved to 2%, which is a rather constructive view,” said Moynihan Claman.
He also said Bank of America does not see Federal reserves Reduction rates this year “because they think inflation was sticky, it will still be sticky.”
Inflation measured by consumer prices index showed a 0.2% increase in the month of the month and 2.8% of jumps compared to the year in February.
Bank of America still sees his customers spend money from Tuesday, According to Moynihan.
“The money moving from their accounts – not only on their credit and debut cards, which is just over 5%, but a total of 5% compared to March 24 to March ’25. And then in the first quarter, it is a similar amount that is a little faster pace than it was in the fourth quarter,” he reported.
“So, everything you hear about consumers stop spending, we don’t see it yet,” Moynihan said, noting that he “fights” well for the American economy and that he “will” throw out “in the future.
According to Bank of America Credit Card, food consumption has increased due to higher prices, he said. Consumption at a restaurant and fun was also positive.
The Bank of America Logotype was displayed on the side of the San Francisco Branch on January 20, 2010. (Justin Sullivan / Getty Images / Getty Images)
“The quality of the loan is good for consumers, especially the main consumers,” Moynihan said. “They are their mortgage loan locked with a very low rate, despite the higher rates and difficulties that cause the apartments market. The cars are already under pressure because the car rates are larger, so they will just add it, and we will see that it is shaken.”
This “really comes down to” consumer employment, he said, noting that the US current unemployment rate and the call of growth salaries “still relatively strong”.
The bureau for the statistics of the work tied up Unemployment rate with 4.1% in February.
“It maintains them in good shape, and it will manage as we work through this period of uncertainty while companies and others shake what it all means and how they adapt,” he said.
| Dice | Security | Last | Change | Change % |
|---|---|---|---|---|
| Back | Bank of America Corp. | 42.56 | -0.26 |
-0.61% |
The consumer in February recorded a decline of almost 11%, according to a study of consumer of the University of Michigan.
“The American consumer is interesting because they will say things and they will do things,” Moynihan told Claman. “And even though the confidence descended last month, they still spent this month. At the end of the day, as long as they are employed, and we pay more, and the traffic rates in companies have been reduced, and the labor market is not as tight as it was, you know, two years ago or a year ago … This is solid setting.”
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He said that the tariffs and “questions about tariffs and uncertainty” are more in small and medium -sized enterprises and large companies.
“But if you look at our small medium -sized customers, it’s interesting before the pandemic, they would be borrowed at a speed of about 40% of credit circles numbers, which means they would use an average of a line. Now they are about 3 or 4% behind it,” Moynihan said.
He suggested that they try to ensure that “they really have something to” and that the tariffs “just add another question.”
Such customers “will be a little on the side” as he clarifies more, Moynihan said.
