Bank of America CEO predicts steady interest rates, calls for simpler regulations

Published 25/02/2025, 17:22
© Reuters

Investing.com -- Brian Moynihan, CEO of Bank of America (NYSE:BAC), anticipates that the Federal Reserve will maintain the current interest rates through this year and the next. Speaking at the Economic Club of Washington on Tuesday, Moynihan suggested that the Fed’s efforts to control inflation could extend until 2026. The Federal Reserve has been maintaining the rates as it aims for a 2% inflation target.

Moynihan attributed over-regulation of lenders as a primary reason for customers losing access to the US banking system, rather than political bias. "We bank everybody. The real question was about over-regulation frankly," he said.

This statement follows a public criticism by President Donald Trump at the World Economic Forum in Davos, Switzerland last month. The President accused Bank of America and JPMorgan Chase & Co. (NYSE:JPM) of limiting business with certain clients. Both banks, however, have denied any discrimination against customers based on their religion or political beliefs.

Moynihan went on to explain that the issue lies in the interpretation of anti-money-laundering regulations, the Bank Secrecy Act, and KYC (know your customer) rules. He highlighted that these regulations place a heavy burden on the banking system to report suspicious activity and perform extensive analysis.

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