The Bank of America CEO is Weighing in on the US Recession

For decades, two consecutive declines in the gross domestic product (GDP) rate have constituted a recession.

Economists and politicians alike traditionally acknowledged this. However, since the GDP rate fell twice under the Biden administration, there’s been an agenda to now redefine the benchmarks of what a recession is.

Nevertheless, by all standards and metrics, the United States is facing a recession. Not only has the GDP declined twice in a row, but furloughs are also increasing. Meanwhile, interest rates continue to grow, along with consumer costs.

Wages, on the other hand, aren’t even in the realm of competing with these price upticks.

Now, Bank of America CEO Brian Moynihan is weighing in on some realities facing the nation’s economy.

The Truth About the US Economy Today
While speaking with the Associated Press, Moynihan explained the experiences that people are having in today’s economy matter more than the terminology that certain officials use to define the economy.

At this point, the costs of rent in America are growing to exorbitant sizes. Sometimes, just rent alone can eat up as much as 40% of a middle-class worker’s income.

In addition to this, the Bank of America CEO also explained people feel like they’re in a recession, regardless of the current agenda to redefine this word.

After pointing out the ongoing decline of consumer confidence and growth of record-breaking inflation, Moynihan stated the increase of interest rates is occurring at an “aggressive” level in the name of bringing down costs.

Yet, in spite of this, people living paycheck-to-paycheck are still going through rough times.
Great Depression 2.0 Incoming?
For as much as Americans are struggling today, the passage of the Inflation Reduction Act is being billed as the straw that will break the camel’s back. Republicans warn that today’s economy is about to get much uglier.

This bill comes with massive tax increases and new spending that will give the IRS all the tools it needs to come after the middle class. Furthermore, multiple economists already stated the Inflation Reduction Act will not be able to fulfill Democrats’ pledge of lowering consumer costs.

In light of these realities, many Americans fear that today’s recession could very well spiral into a depression, sooner rather than later.