Bank of America CEO Brian Moionihan unpacked the influence of auto tariffs and the future of the economy that progressed on ‘The Claiman Countdown’.
Bank of America CEO Brian Mionihan President Donald Trump’s new auto import levy was weighed, how consumers are reacting to the bank’s expectations about tariffs and interest rates of the administration.
New measures unveiled by the President on Wednesday will impose 25% tariffs on passenger vehicles, light trucks and some auto parts imported in America
“I think the concept was not a surprise. It was in the campaign, it has been talked about, but reality is coming now, and so people are starting to adjust and trying to find out what this means,” Mionihan said on “Claiman Countdown” on Thursday.
President Trump announces new auto tariff
Analysts of Bank of America feel that the new tariffs will rise to increase the prices of the car and slow down the purchase of vehicles, “he told the host Liz Claman,” That you are looking reflected in the market. ”
Bank of America CEO Brian Mionihan appears on January 18, 2023 during a two -day panel session of the World Economic Forum (WEF) in Davos, Switzerland. (Stephen Vermutha / Bloomberg Getty Image / Getty Image)
“When they think more widely about it, it can add a fourth percent of inflation. It can slow down some growth in places like Japan as they export more to the United States, but overall, these things are absorbed over time,” said Moionihan. “But until they came to know, no one really knows it, and these are unprecedented water in terms of quantity and different pieces and such things.”
Auto tariffs have been implemented earlier next week, which mark the latest levy on imports from Trump since assuming office in January.
On Wednesday, President Donald Trump indicates a female history at the White House at Washington, DC. (Reuters / Carlos Baria / Reuters)
“If we step back and talk about our team, all tariffs try to make dialogues and make it a factor, our Bank of America Research Team … They grow in America, they grow positive growth 2%, one-and-a-half couples in the first couple, one or a half in the first couple, moving towards 2%, which is a quite creative scene,” Moyaniahn told Claiman.
He also said that Bank of America does not see federal Reserve Cutting rates this year “because they feel that inflation has been sticky, will remain sticky.”
Federal Reserve economy, unchanged major interest rates amid uncertainty on inflation
Inflation measured by the Consumer Price Index showed an increase of 2.8% month after month and 2.8% in February.
Bank of America is still watching its customers spending money till Tuesday, According to Moyanihan,
“Money out of their accounts – not only on their credit and debit card, which is slightly higher than 5%, but in total 5%, where the march was ’24 to March ‘from March 25 and then in the first quarter, it is a similar amount, which is slightly faster than the fourth quarter,” he said.
Mionihan said, “So you are hearing about all consumers that we are stopping expenses, we are not yet looking at it,” “Bods Well” for America’s economy and “shake” in the future.
He said that according to data from Bank of America Credit Card, the expenditure on food has increased due to higher prices. Restaurant and entertainment expenses were also positive.
The Bank of America logo is displayed on the banks of a branch office in San Francisco on January 20, 2010. (Justin Sulivan / Getty Image / Getty Images)
“The quality of the credit is good for consumers, especially prominent consumers,” Mionihan said. “They have their mortgage loans closed at a very low rate, despite high rates and difficulties in the housing market. Cars are already under slight pressure as auto rates are high, so it will just add it, and we will see that shake out.”
This comes for “employment for the consumer”, he said, keeping in mind the current unemployment rate of the US and “still strong.”
Labor Statistics Bureau judges Unemployment rate At 4.1% in February.
He said, “This keeps them in good shape, and it will bend well because we work through this period of uncertainty because businesses and others mean to do all this and how they adjust it,” he said.
| Langer | Security | Last | Change | Change % |
|---|---|---|---|---|
| BAC | Bank of America Corp. | 42.56 | -0.26 |
-0.61% |
According to Michigan University of Consumers, consumer Bhavna recorded a decline of about 11% in February.
“American consumer is interesting because they would say things and they will do things,” Mionihan told Claman. “And even though the confidence was decreasing last month, he spent this month. At the end of the day, as long as they are working and we are paying them more and the turnover rates in companies are down and the job market is not as tight as you know, two years ago or a year ago … This is a solid setting.”
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He said that the issues and uncertainty of the tariff and “tariffs” are more in small and medium -sized businesses and large businesses.
“But if you look at our small, medium -sized customers, the interesting thing is before the epidemic, they will borrow at a rate of about 40% of the line of credit round numbers, which means they will use the line at an average of 40%. Now, they are about 3 or 4% behind,” Moionihan said.
He suggested that they are trying to ensure that “they are actually doing something to spend” and tariff “just add another question.”
Mionihan said that such customers are “going to have a bit on the sideline” until it becomes more clear, Mionihan said.
