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BofA CEO: Struggling Americans feel they're in recession

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The Associated Press

Associated Press

Ken Sweet

NEW YORK (AP) — Bank of America's CEO says whether US economy is technically in recession I mentioned that the recent discussion about the point is missing. Importantly, the current economic climate is hurting the most vulnerable.

"Recession is a word. Whether we're in a recession or not doesn't really matter. In an interview with The Associated Press, he spoke about inflation, the state of the economy, and the health of the nation.

The question of whether the US economy is in recession is , is politicized ahead of the 2022 midterm elections, with inflation at levels not seen since the early 1980s and U.S. consumer confidence declining, but economic growth such as the monthly jobs report Data remain solid: In response to rising consumer and wholesale prices, the Federal Reserve has been aggressively raising interest rates in hopes of keeping inflation in check while causing less economic damage.

Moynihan, who has been BofA's CEO since 2010, did not say the US economy was in recession, and the declaration came from "a lot of people in Cambridge, Massachusetts." said it must be brought down. of economic research, a bipartisan organization that determines the beginning and end of recessions.

Moynihan, however, cited two of his major issues, gas prices and rents, that negatively impact the average American as reasons for concern. The national average for a gallon of gasoline he soared to just over $5 in June and dipped below $4 last week. Moynihan seemed more concerned about rising rents, which tend to be more stable than gasoline prices. It's up 15%, and rent could account for 40% of these households' income," Moynihan said. Rent accounts for about a third of the government's consumer price index, rising 8.5% year-on-year in July.

The average US consumer entered this period of high inflation and economic turmoil on sound financial health. The US government has spent trillions of dollars on unemployment benefits and other forms of pandemic relief. In response, Americans paid off their debts faster than historical standards and maintained higher than normal levels of savings. These economic programs were largely terminated last year.