Bank of America CEO: Fed Has to Tighten to Fix Too Much Stimulus, We’ll Have Recession in 2023 and Housing Market Downturn for 2 Years

On Tuesday’s broadcast of “CNN This Morning,” Bank of America CEO Brian Moynihan stated that there was too much COVID stimulus, and “Now, we have to adjust to that decision. And that’s why you’re seeing the Fed tighten quick.” Moynihan also said 2023 will see a “mild” recession and the housing market will “take almost two years” to adjust.

Moynihan predicted a “mild recession” but not the massive downturn predicted by others like Jamie Dimon.

Moynihan also stated that, with the housing market, “as we see inflation slow down, and you’re seeing the rate of growth of inflation slow down. There’s still inflation, you’ll see rates come back down…and you’ll see the adjustments come through. And that’ll happen. That’ll take almost two years. Two years of slower activity.”

Later in the interview, Moynihan said the economy is facing an unprecedented situation, and “I think our economy is holding on better than the rest of the world right now. Now, the reality is, is did we give more stimulus than you could theoretically calculate? But nobody knew at the time.”

Co-host Poppy Harlow then cut in to ask, “Too much stimulus? Lesson learned?”

Moynihan answered, “Yeah. But that was the last administration, this administration. But nobody knew at the time. And I think that’s where people can look through the rearview mirror and always have a great point of view. The sportswriters can. But the players on the field had to make a decision, was it right or not? And they did. Now, we have to adjust to that decision. And that’s why you’re seeing the Fed tighten quick.”

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