(Bloomberg) -- Bank of America Corp. Chief Executive Officer Brian Moynihan told President Joe Biden that American consumers remain in solid shape despite inflationary pressures that have wreaked havoc on the economy.
“Right now, they’re doing what we want them to do, which is being employed,” Moynihan said Thursday during a White House meeting with other corporate executives to discuss the economy. “Some of the stresses in the system, there’s no discounting that, and we’re trying to help all those customers.”
The Bank of America chief said Americans spent 10% more in the first 25 days of July compared with the same period last year and have ample savings. He credited financial rescue packages signed by Biden and former President Donald Trump as well as “strong employment” for mitigating inflation-related stress.
Still, Moynihan said Americans’ fears about inflation persist as they continue to pay high prices for consumer goods and rent.
“They’re worried about inflation because prices go up, they’re worried about rent increases,” he said.
Earlier: Biden Counters GOP Recession Talk by Touting Job Gains
Biden appeared to welcome the comments, after spending the day battling Republican claims the US has entered a recession, and following the release of disappointing economic data. The president and his team have argued the nation isn’t in a recession despite the economy shrinking for a second consecutive quarter, citing low unemployment, job growth and foreign investment.
Biden thanked Moynihan “for always being available” to share his input on the economy. “Thanks for taking all my phone calls, pal,” he said.
Moynihan said leisure spending remains steady even amid high gas prices, giving him confidence that American households are economically strong.
“They’re traveling and experiencing the world due to the vaccines and the condition of the Covid pandemic,” he said. The price of gas “is starting to come down as the price of oil stabilized.”
Moynihan appeared virtually at Thursday’s meeting. He has participated in White House events on other occasions during Biden’s presidency, including a briefing on the war in Ukraine in March, as well as gatherings last year on cybersecurity and the federal debt limit.
The CEO also attended White House events during Trump’s presidency.
©2022 Bloomberg L.P.
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