Interview with Brian Moynihan, CEO of Bank of America on 'Face the Nation'

MARGARET BRENNAN: Thank you for joining us today.

BANK OF AMERICA CEO BRIAN MOYNIHAN: It’s nice to be back. Always a pleasure.

MARGARET BRENNAN: Let’s delve into the state of our economy. Recent CBS polls indicate that the majority of Americans find holiday shopping increasingly unaffordable.

MOYNIHAN: Absolutely.

BRENNAN: It seems many are cutting back because their earnings aren't keeping pace with inflation. Yet, there's a different narrative for those in higher income brackets. What does the data show regarding actual spending habits?

MOYNIHAN: From our observations, both in macro and segmented views, the total expenditure from Thanksgiving through Cyber Monday has risen by roughly 4.25% compared to the same period last year. There's noticeable growth across all income levels, with lower income groups still increasing their spending, albeit at a slower pace compared to others. Ultimately, spending is robust, supported by low unemployment and rising wages, though inflation remains a concern.

BRENNAN: Is spending still skewed towards wealthier individuals? Is this what people refer to as a K-shaped recovery?

MOYNIHAN: Our analysis confirms varied growth rates among income brackets, yet all segments are experiencing increases. This suggests an overall upward trajectory in economic activity compared to last year.

BRENNAN: Why, then, do sentiments remain low despite rising spending?

MOYNIHAN: It ties back to perceptions of cost and price adjustments throughout 2025. We underwent unusual economic phases due to the pandemic and subsequent policy responses. As inflation concerns are addressed incrementally, anxiety surrounding price surges may diminish.

Economic Risks and Future Projections

BRENNAN: What are current threats to economic stability as you see them?

MOYNIHAN: A primary issue is consumer spending maintaining its momentum as we head into 2026. Disruptions such as wars could impact markets, along with cyber-related events. Still, a buoyant consumer market is crucial to sustaining economic growth initiatives driven by governmental stimuli.

BRENNAN: The previous year witnessed shocks from trade policies. With President Trump now opting for de-escalation in trade tensions, is the situation with China beginning to stabilize?

MOYNIHAN: Initially, uncertainties surrounding trade policies caused concern, particularly among small to medium enterprises. However, with ongoing negotiations, we're observing a gradual reduction in trade friction, although relations with China remain uniquely influenced by factors like national security and technology dependencies.

Impact on Small Businesses and Technological Integration

BRENNAN: How have these developments impacted small businesses, notably given Bank of America's status as a leading small business lender?

MOYNIHAN: The early part of the year was indeed challenging for small businesses due to rising costs from interest hikes and trade uncertainties. However, as interest rates began to stabilize, new constraints emerged around accessing labor, heavily driven by unresolved immigration policy.

BRENNAN: Labor scarcity continues to be a major concern. Is this coupled with advancements in AI, potentially replacing human jobs at the bank?

MOYNIHAN: AI tools like our virtual assistant, Erica, illustrate how we're enhancing customer interactions without entirely phasing out human jobs. While AI certainly assists in efficiency, we expect it to complement rather than replace our workforce, allowing us to better serve our customers.

BRENNAN: Despite advancements in technology, hiring, especially for new graduates, remains steady, with over 2,000 new recruits recently added?

MOYNIHAN: Indeed, we've brought in a significant number of new graduates. Our message to them is to leverage technology in their roles to spearhead progress rather than see it as a threat.

Housing Market and Interest Rates

BRENNAN: Shifting gears to the housing sector, the Federal Reserve notes sluggish activity. Do you foresee reasons for this hesitation?

MOYNIHAN: Elevated interest rates are a fundamental factor impacting both home sales and construction. Addressing housing shortages will require increased permitting to balance supply and demand.

The discussion also touched on Fannie Mae and Freddie Mac's future public market involvement. Ensuring government-backed guarantees remain in place will be crucial in maintaining investment security for longer-term mortgages.

Financial Policies and Strategic Partnerships

BRENNAN: President Trump's administration is pushing for significant changes at the Federal Reserve. As Chair Powell retires, how consequential is this transition for consumers?

MOYNIHAN: Presidential appointments to the Federal Reserve are standard, but the market's focus should not excessively hinge on the Fed. While stabilization roles were critical post-crisis, the private sector is the true engine of economic dynamism.

BRENNAN: Finally, regarding sustainability-related decisions in the banking sector, how does Bank of America plan to navigate any incoming political pressures?

MOYNIHAN: Addressing any concerns, we ensure our banking practices are clearly communicated and aligned with accurate interpretations. This helps maintain our commitment to serving diverse consumer needs without unintended bias.

BRENNAN: Thank you for your insights, Brian Moynihan. Happy Holidays!

MOYNIHAN: Happy Holidays, Margaret. It’s been a pleasure.