Bank of America (Back) He finally addressed what is on the mind of many consumers across the country.
When President Donald Trump announced on April 2. He announced the “Release Day” on several countries, the US stock market lost about $ 3.1 market value the next day, which is the highest reduction since March 2020.
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Trump believes that these tariffs, which are tax companies to import goods from abroad, will encourage more production in the US; However, they can also inflate the prices of goods.
Related: Jamie Dimon sounds alarming about a recession
Many consumers are already worried that Trump’s tariffs have a negative impact on their finances and the economy.
According to a recent research Of the market research company, 83% of consumers said they would adjust their shopping habits to prepare for the high prices that Trump’s tariffs could bring. Some of these changes include searching for sales and coupons, delaying shopping, storage of items, etc.
Also, 72% of consumers said they are “very or a little worried” because of the recession that occurs in the next year.
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Bank of America surprise the prediction
In the midst of an increased anxiety due to the economy, the Cinemas Main Bank of America Alistair Borthwick said during a recent call with journalists that the bank does not see a recession on the horizon, he states A new report from Barron.
“The client’s concerns about trade policy and recent market turmoil has grown,” Borthwick said during the call. “However, our research team does not believe at this point that we will see the recession, and our clients are still showing encouraging signs. Employment is obviously healthy, and consumers have proven to be resistant.”
Related: Mark Cuban has a sharp message for tariff supporters
He emphasized that although the company’s economists have noticed some growth assessments, they “do not see the recession at the moment.”
Bank of America CEO Brian Moynihan repeated that certificate during the recent profit call. He particularly emphasized recent consumers data, claiming that “the consumer continues to push money in the economy.”
“But going more to what our customers show, it shows that money moving in all our consumer consumer methods, debit and credit cards, aca, Zelle, Zelle, etc., all the aggregate shows that in the first quarter of 2025 it increased (a) 4.4% Tempo compared to the first quarter of 2024,” Moynihan said.
JPMORGAN Chase predicts the opposite
Comments of the Bank of America leadership come after the JPMORGAN Chase (Jpm) Executive director Jamie Dimon warned in his annual letter to the shareholders that the US economy had already “weakened” before Trump announced Tariff.
“The economy faces significant turbulence (including geopolitics), with potential positive calls of tax reform and deregulation and potential negatives of tariffs and” trade war “, which is a constant adhesive inflation, a high fiscal deficit and still quite high property prices,” Dimon said.
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Dimon also said that the tariff would cause a recession “remains concerned”, but warned that he would “slow growth”.
“Recent tariffs are likely to increase inflation and cause many to consider the more likely recession,” Dimon said. “Even with the recent decline in market values, prices remain relatively high. These significant and somewhat unprecedented strength cause us to stay very careful.”
JPMORGAN Research recently announced in a press release that the likelihood of a recession This year is 60%, which is greater than the 40% he previously predicted.
The research team marked that, although Trump, on April 9, announced a break of 90 days on reciprocal tariffs to all countries (except China), dropping them at a universal rate of 10%, the remaining tariffs continue to be a threat to the economy.
“The latest vacation of the liberation day is reduced by a shock to a global trading order, but the remaining universal tariff of 10% is still a material threat to growth, and 145% of the cinema on China retains the likelihood of recession at 60%,” said JPMORGAN research in a statement for the public.
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