Bank of America‘s customers are spending freely on dining, entertainment and other experiences, which in turn supports U.S. employment, CEO Brian Moynihan told CNBC’s Becky Quick.
The bank’s customers boosted spending by 8% in the first three months of this year compared with the year-earlier period, Moynihan told Quick on Tuesday.
“They’re spending on things frankly which drive employment, meaning they’re spending on experiences at amusement parks and theaters or restaurants or outside concerts,” Moynihan said.
The current dynamic is part of a virtuous cycle that supports employment, versus an earlier boom in hard goods that mostly supported overseas producers, said the CEO of the second biggest U.S. bank by assets. Earlier Tuesday, Bank of America posted first-quarter results that topped expectations as the bank benefited from higher interest rates.
Moynihan reiterated that his bank’s economists see a mild recession in the second half of this year.
If the Federal Reserve can slow inflation while keeping unemployment around 4.5% or less, “it would be a heck of an accomplishment,” he added.