Bank of America CEO Brian Moynihan said the lender’s strategists still expect the U.S. economy to achieve a soft landing, on account of continued strength in consumer spending.

“We won’t have a recession,” Moynihan said while addressing a luncheon hosted by the Economic Club of New York, adding that robust consumer spending caused the reversed recession calls.

Moynihan noted that BofA (NYSE:BAC) customer savings as well as commercial customers’ credit quality continue to be robust.

The executive said the Federal Reserve is winning the battle against inflation. “They caught up fast, but now they’ve got the equal, opposite problem – to be careful they don’t go too far” in tightening, he cautioned.

As for the proposed higher capital requirements for U.S. banks, or ‘Basel III endgame’, Moynihan echoed his counterparts’ concerns regarding their potential impact.

“The rules would make U.S. banks less competitive globally,” he warned, adding that he’d never seen so much controversy over capital rules.

BofA (BAC) CFO Alastair Borthwick previously warned that the proposed rules may constrain bank lending as risk-weighted assets could be double counted in some instances.

And they’re not the only ones criticizing the proposal. JPMorgan CEO Jamie Dimon, Goldman Sachs CEO David Solomon and a couple of Fed governors all sounded the alarm on the risks to bank lending.

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• Source: https://seekingalpha.com/news/4016086-bank-of-america-ceo-soft-landing-strong-consumer-spending?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news