BofA's Moynihan Sees 'Fear of Recession' as Biggest Recession Risk
President Donald Trump held a conference call Wednesday amid a plunge in the stock market with three of Wall Street’s top executives -- JPMorgan Chase & Co.’s Jamie Dimon, Bank of America Corp.’s Brian Moynihan and Citigroup Inc.’s Michael Corbat.
The three chief executives were in Washington for a previously scheduled meeting with Treasury Secretary Steven Mnuchin on banking secrecy and money laundering, according to people familiar with the matter. On a conference call, they briefed the president, who was at his resort in Bedminster, New Jersey.
The talks came during a tumultuous day in markets as Trump’s trade war with China continued to cast a cloud over the global economy. Stocks plummeted as signs appeared in the bond market a recession could be on the horizon.
Moynihan, speaking in a Bloomberg Television interview on Friday, said the turmoil has been driven by issues outside the U.S., and that recession risks are low.
“We have nothing to fear about a recession right now except for the fear of recession,” Moynihan said.
Back-and-forth posturing by Trump and Chinese President Xi Jinping has kept investors on edge amid volatility that’s gripped markets for most of August. China called looming U.S. tariffs a violation of accords, while Trump said Thursday that any deal with Beijing must be “on our terms.”
Spokespeople for JPMorgan, Citigroup and Bank of America declined to comment, as did the Treasury Department.
--With assistance from Katherine Chiglinsky and Michelle F. Davis.