Bank of America CEO Brian Moynihan wants you to stop worrying about a recession. His argument: the very thing people are panicking about, higher interest rates, is actually proof the economy is doing fine.
Speaking on July 1, Moynihan framed the current rate environment as a natural byproduct of economic strength and the Federal Reserve’s ongoing effort to tame inflation. The federal funds rate currently sits at 3.5-3.75%, and Bank of America is forecasting three more rate hikes ahead.
The numbers behind the optimism
Bank of America projects US GDP growth of 2.4% for 2026, a step up from the roughly 2% pace seen in 2025. Part of that acceleration, according to Moynihan, comes from productivity gains tied to artificial intelligence.
The bank has completely abandoned recession predictions. Not hedged them, not softened them. Dropped them entirely.
