Bank of America CEO Says Consumers Remain Resilient Amid Rising Gas Prices

Bank of America CEO Brian Moynihan stated on Wednesday that internal data indicates American consumers are maintaining their spending habits despite a significant increase in gasoline costs. Speaking on CNBC’s “Mad Money,” Moynihan noted that the bank is observing a resilient economy, even as Brent crude prices surpassed $100 per barrel.

“Consumers spent in the month of August about 4% more than they spent last August,” Moynihan said. He highlighted that this growth follows a 5% increase during the previous quarter, describing the trend as consistent with a robust economic expansion. His remarks address growing anxiety that escalating energy prices, driven in part by rising tensions between the United States and Iran, could severely strain household budgets.

Investors frequently monitor major banking executives for real-time indicators of economic health, as banks like Bank of America possess vast datasets on consumer wages, spending, and credit behavior. Moynihan expressed confidence in these metrics, stating, “Everything we see is fine,” and added that credit statistics are currently at their best levels in years.

The CEO also pushed back against fears surrounding record-breaking credit card balances. He argued that while nominal debt has increased, it must be viewed in the context of overall economic growth. “You hear about record outstanding balances of credit cards, but the economy is 40% bigger,” he explained. “So what you see is a recovery back to trend.”

While corporate borrowing and investment activities remain active, Moynihan acknowledged that higher interest rates are creating more friction for small and midsize businesses. These companies, which often depend on short-term credit lines, are feeling the pinch more acutely than larger entities. However, he emphasized that these businesses are still utilizing their credit facilities and that credit quality remains solid.