Bank of America CEO Brian Moynihan said that Americans are changing their spending habits in response to rising prices. Moynihan explained that they have observed a shift towards more affordable options, especially instead of expensive pet food.
Moynihan noted that the bank's aggregated internal card data helps monitor consumer behavior in real time. According to him, despite heavy advertising for premium products, customers prefer lower-priced items.
According to the bank's data, monthly spending with credit and debit cards increased by 5% in May compared to the same period last year. Moynihan pointed out that this increase was seen not only in essential expenses but also in categories like holidays and dining out.
Moynihan said that people speak more pessimistically about the economy and their personal finances in surveys and interviews, but they continue to spend. "We look at what people do, not what they say," Moynihan said, adding that the real risk is if the gap between words and actions turns into actual cutbacks.
Hiring and Artificial Intelligence Message
The bank's CEO argued that companies need to continue hiring employees. He said organizations should recruit and train new-generation workers and then reskill them to adapt to artificial intelligence.
Recalling that the bank recently hired 2,000 new university graduates and 2,000 interns, Moynihan said they plan to hire 10,000 veterans and 8,000 community college graduates over the next five years. He also noted that with a workforce of about 210,000, the bank needs to hire 1,300 to 1,500 people per month due to departures and retirements.
Regarding wage policy, Moynihan said Bank of America raised its minimum wage to $25 per hour last year, pushing the starting salary above $50,000 annually.
