Bank of America CEO Brian Moynihan Predicts No Interest Rate Cuts This Year

Bank of America CEO Brian Moynihan shared his views on President Donald Trump’s new auto import tariffs, consumer reactions to the administration's trade policies, and the bank’s outlook on interest rates.

The new policy announced by the president on Wednesday will impose a 25% tariff on passenger vehicles, light trucks, and certain auto parts imported into the U.S.

"I think the concept wasn’t a surprise. It was in the campaign, it’s been talked about, but the reality is now coming, and so people are starting to make adjustments and trying to figure out what it all means," Moynihan said Thursday on "The Claman Countdown."

The auto tariff is slated to come into force early next week, marking the latest levy on other countries’ imports from Trump since taking office in January.

"If we step way back and talk about our team, given all the tariff dialogue and trying to factor it in, our Bank of America research team… they have growth in the U.S., positive growth 2%, one-and-a-half in the first couple of quarters and moving to 2%, which is a fairly constructive view," Moynihan told Claman.

He also stated that Bank of America expects the Federal Reserve to hold off on rate cuts this year, "as they believe inflation has been persistent and will remain that way."

"The money moving out of their accounts — not only on their credit and debit cards, which is a little over 5%, but in total — is 5% over where it was March of ‘24 to March of ‘25 and then in the first quarter, it’s a like amount, which is a little faster paced than it was in the fourth quarter," he reported.

"So all you hear about consumers are stopping spending, we’re not seeing it yet," Moynihan said, noting that "bodes well" for America’s economy and will "shake out" in the future.

He mentioned that, according to Bank of America credit card data, spending on food has increased partly due to higher prices, while spending on restaurants and entertainment has also shown positive growth.

"The credit quality is good for consumers, prime consumers especially," Moynihan said. "They have their mortgage loan locked in at a very low rate, despite the higher rates and the difficulties that are caused in the housing market. Cars are already under a bit because auto rates are higher, so this will just add to that, and we’ll see that shake out."

It "really comes down to" employment for the consumer, he said, noting the U.S.’ current unemployment rate and calling wage growth "still relatively strong."

Moynihan stated, "Credit quality remains strong, particularly for prime consumers. They have their mortgage loans locked in at very low rates, despite the challenges higher rates pose in the housing market. Cars are already facing some pressure due to higher auto loan rates, and this will only add to that, so we’ll see how it plays out."

He added that it "ultimately comes down to" employment, pointing to the current U.S. unemployment rate and describing wage growth as "still relatively strong."