The CEO of Bank of America, Brian Moynihan, cautioned that while consumer spending remains robust, the U.S. middle class is beginning to feel a squeeze as inflation stays elevated and a government shutdown threatens broader economic momentum. He highlighted uneven income growth and rising risks that could undermine the consumer‑driven engine of the economy.
Moynihan noted that households earning in the $75,000–$100,000 range continue to grow their incomes, but at a slower rate compared to higher‑income households—suggesting a “pinch” in the middle. He pointed out that though spending remains strong—debit, credit, cash withdrawals all are up—this strength may be deceptive: the underlying resilience masks potential softness ahead.
He also flagged the ongoing government shutdown as a growing threat to economic growth. The shutdown is delaying business approvals, IPOs, federal contracts and other activity, potentially dragging on overall economic expansion.
Moynihan stressed that high inflation continues to affect households, especially those lower on the income scale, as they pay a larger share of income toward necessities.
