Bank of America CEO Brian Moynihan Talks Consumer Spending, Inflation and Fed Policy on Face the Nation

When Margaret Brennan asked Bank of America’s chief executive, Brian Moynihan, to weigh in on the mood of everyday Americans, his answer was a blend of optimism and caution. He started by noting that roughly 70 million U.S. consumers – those who together splash more than $400 billion into the economy each month – actually spent about 5‑6 percent more in June 2026 than they did a year earlier.

“People are definitely feeling the pinch from higher gas and food prices,” Moynihan admitted, “but the middle and upper‑income brackets are still inching forward.” He highlighted that wage growth across the board is now clustering around 3‑4 percent, a sign that earnings are finally catching up with price pressures.

The CEO didn’t shy away from the elephant in the room: oil. Since the Iran‑related conflict erupted, pump prices have jumped roughly 31 percent, and inventories remain tight. “When oil was hovering near $100 a barrel, we were seeing gas around $4 a gallon,” he explained. “It dipped a bit in late‑May, but it’s a roller‑coaster – it could rise again any week.”

For businesses, the story is a bit different. Higher energy costs ripple through the supply chain, inflating the price of everything from plastics to food. That, Moynihan warned, is why the bank expects inflation to stay elevated well into 2027 and 2028, and why the Federal Reserve is likely to keep tightening rather than cutting rates.

He speculated that any further Fed moves will probably come toward the end of the year, not next week. “We’ve seen three hikes already this cycle,” he said, “and the next one will depend on how broader price categories – housing, food, core services – behave.”

Credit‑card delinquencies, another hot topic, have risen among younger borrowers. Yet Moynihan pointed out that overall industry delinquency rates have actually been on a modest decline. “There’s a lot of noise out there,” he said, “but the data suggests most households are still managing their debt, even if they’re feeling squeezed.”

In the end, Moynihan stressed that while consumer sentiment is fragile, spending patterns show resilience. “We watch what people do, not just what they say,” he concluded, noting that the current spending tempo, even if slower than pre‑pandemic peaks, is still robust enough to keep the economy humming.