Bank of America CEO Brian Moynihan saidOffroadarcadegameEven with high interest rates, American consumers are still in good shape thanks to wage growth, and companies are once again looking for mergers and acquisitions.
Consumer spending rose 3 to 4 per cent in May from a year earlier, Moynihan said on Monday. He said this growth is consistent with an environment in which economic growth is slowing and inflation is slowing, but it is still a positive factor for the US economy as people continue to spend more.
"it shows the resilience of American consumers," Moynihan said in an interview at the French business summit in Versailles. "there may be hundreds of problems tomorrow, but everything is in good shape right now."
Brian Moynihan, chief executive of Bank of America, said Americans are getting used to high interest rates, but people are adjusting. He was interviewed by Jonathan Ferro at the French corporate summit in Versailles.
As funding costs become more predictable and the economy remains strong, companies that hit the brakes when the Fed initially raised interest rates have re-started looking for acquisitions. Investment banks such as Evercore Inc., Lazard Inc. And Moelis & Co. Have all said in recent weeks that they will benefit from increased M & An activity.
Moynihan said on Monday that investment banking activity was very active and that "there are a lot of conversations and a lot of deals being signed". But he said concerns about the timing, pricing and certainty of the deal remained. "large companies can hold on longer because they are more resilient, especially if they are acquiring a smaller company. But if a company wants to acquire another company that may be 30% to 40% of its size, it has to be very cautious. "