Bank of America CEO Brian Moynihan joins 'Mornings with Maria' to warn stablecoin legislation could hurt small business lending while discussing America 250 plans and the US economic outlook.
While Wall Street braces for the prospect of a more aggressive Federal Reserve, Bank of America CEO Brian Moynihan has a reassuring message for worried investors.
Despite Bank of America issuing the most dangerous forecast on Wall Street – predicting three interest rate hikes under Federal Reserve Chairman Kevin Warsh – Moynihan insists that the recession is nowhere.
“I [U.S.] the president thought it would be a downgrade. Now we are talking about rate hikes. Does that lead to a recession?” FOX Business' Maria Bartiromo asked Moynihan on the floor of the New York Stock Exchange on Wednesday.
SUPREME COURT RULES IN TRUMP'S ATTEMPT TO FIRE GOVERNOR LISA COOK.
“No, because at the end of the day, that's the balance the Fed has to have, it's trying to keep inflation out of control, price stability,” Moynihan replied. “And Chairman Warsh has made it clear that that is what he stands for.”
Bank of America CEO Brian Moynihan visits the Fox News Channel Studios on June 3, 2026, in New York City. (Getty Images)
“You focus on that, that's their job. But you also have to be aware of the other side, that is, the recession means that unemployment is increasing, and you have to stabilize unemployment. So they have to be aware of that,” he added. “The US economy is growing better than most. Inflation is higher than people want it to be, but if you talk to people in the positions that Kevin is in … they're not going to be able to reverse inflation. They're going to say, 'Wait, we're never going to get the economy to recover fast enough.' I think it's easier to take it down carefully than it is to keep it going, so you want to go out a little bit higher.”
During their latest meeting, the Federal Reserve announced it would hold interest rates steady due to concerns about inflation amid the Iran war, as Warsh's tenure at the central bank begins in earnest.
Kevin Hassett, director of the White House National Economic Council, discusses market expectations for higher interest rates.
Fed policymakers voted 12-0 to leave the benchmark federal funds rate unchanged in its current range of 3.5% to 3.75%. The move follows the central bank's decisions to hold interest rates unchanged in January, March and April after three consecutive cuts of 25 basis points in September, October and December last year.
Moynihan says higher interest rates should not be feared but celebrated as a sign of a strong US economy.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Stephen Miran of Hudson Bay Capital Management discusses the influences on Fed chairman Kevin Warsh in 'Making Money.'
“We have a large research team…[ing] from '27 to '28, mainly to deal with the effects of the oil price shock,” said the CEO. “But in the end, the economy grew a little faster than they thought it would grow a few months ago.”
“Inflation is going to take a while, prices are going to be higher. But everyone is arguing whether prices should be higher or lower. At the end of the day, prices are a result of a very strong economy in the United States and the need to keep inflation under control.”
READ MORE AT FOX BUSINESS
Eric Revell of FOX Business contributed to this report.
