Bank of America CEO sees strong consumer spending despite higher Treasury yields

In an interview in Dublin, Bank of America chief Brian Moynihan pointed to the surge in 10-year Treasury yields, now at 5.36%, as a historical perspective on current market stress. Despite the rise, he said US consumers continue to spend strongly, supporting growth forecasts of roughly 2.3% from the IMF. Bank of America recently reported a 17% decline in third-quarter profit and saw its stock slide after a $1.2 billion penalty for anti-money-laundering failures.

Moynihan also mentioned expectations of three more Fed rate hikes before inflation eases. He stressed the importance of immigration reform for sectors like construction and healthcare, and noted ongoing AI initiatives within the bank. The CEO concluded that the bank will keep serving successive administrations while addressing regulatory concerns.