Bank of America CEO: Consumer Spending Underpins Economy, Expects Over 2% Growth This Year
Miles Bennett
Bank of America CEO Brian Moynihan says U.S. consumer spending rose roughly 6% year-on-year in Q2; despite weak sentiment in polls, actual spending remains strong, and he expects at least 2% GDP growth this year.
Consumers say they're struggling — so why are they still spending?
Surveys show consumer confidence is low, yet Bank of America data puts Q2 consumer spending up about 6% year-on-year.
Moynihan calls it a "say one thing, do another" paradox — people voice concern but keep spending.
This means → to gauge economic health, watch what consumers do, not what they say.
How much did the World Cup boost spending?
Bank of America research shows that in the three weeks ending June 27, in-person dining and bar spending in host cities rose 5.3% year-on-year, versus 3.8% elsewhere.
In the prior three weeks, host-city spending growth actually trailed other regions — the tournament flipped the trend immediately.
In plain terms = the World Cup didn't just fill stadiums; it pulled real dollars into restaurants and bars.
Will the new Fed chair shake things up?
Moynihan says he has known Fed Chair Kevin Warsh since the George W. Bush era and expects him to be "a traditionalist."
He believes Warsh "thinks the Fed has its lane and will stay in its lane" — no disruptive moves.
Moynihan added: "The U.S. economy, broadly, is not a central-bank-driven economy." This means → in his view, consumers drive the economy, not the Fed.
Can this optimism hold through the second half?
Moynihan voiced bullishness on the U.S. economy as early as January; in Bank of America's latest earnings, he credited growth to a "healthy economic backdrop" and "resilient consumers."
But inflation-driven cost-of-living pressure is real; whether spending can sustain roughly 6% growth into the second half is the key test.
In plain terms = the data supports optimism for now, but the real exam comes in the second half — if consumers start pulling back, the narrative changes.
Content is for reference only, not financial advice.