Bank Of America CEO Is Wrong Again: America Doesn’t Need Three More Rate Hikes

Chip Somodevilla/Getty Images

Wall Street had a rough week last week, with the Nasdaq down nearly 5%, and one reason was an unnecessary dose of pessimism from one of the country’s most influential bankers.

Bank of America CEO Brian Moynihan recently warned that the Federal Reserve needs to raise interest rates three more times this year to tame inflation. Coming from the head of the nation’s second-largest bank, those comments understandably rattled investors already on edge about AI overspending.

But they are dramatically misguided. So much so that they seem like an attempt to jawbone the economy downward to help Democrats in this year’s midterm election.

Observe how the inflation scare that briefly flared after the conflict with Iran has already begun to dissipate. The price of oil has returned to pre-War levels. Since energy costs are an input in all goods and services, this price normalization removes the inflation risk.

In other words, this inflation was truly transitory, a stark contrast to the prolonged........

© The Daily Caller