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Bank of America CEO warns inflation will back Fed into a corner
['Moz Farooque', 'July', 'Min Read']
Yahoo Finance
We're seeing that consumer spending is still growing, wage gains haven't gone away, and corporate dealmaking is showing fresh momentum.
However, in an exclusive interview with CBS News' "Face the Nation," Bank of America CEO Brian Moynihan sees something more troubling beneath the surface.
The economy is arguably holding its own, but the relief households expected hasn't followed.
Moynihan warns inflation could outlast the recoveryMoynihan's big concern is that inflation will likely remain sticky enough to prevent the relief everyone is expecting.
The delayed pass-through helps to explain why Bank of America's economists see "inflation staying higher all the way into 2027 and 2028."