US consumers could become discouraged without rate cuts, Bank of America CEO says

If the U.S. Federal Reserve does not start cutting interest rates relatively soon, U.S. consumers could become dispirited, Bank of America (BAC.N), opens new tab CEO Brian Moynihan said on Sunday.

At the end of July the Fed kept the policy rate in the same 5.25%-5.50% range it has been for more than a year, but signaled that a rate cut could come as soon as September if inflation continued to cool.

“They’ve told people rates probably aren’t going to go up, but if they don’t start taking them down relatively soon, you could dispirit the American consumer,” Moynihan told CBS in an interview.

Source: REUTER