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The largest U.S. banks are preparing for a tightening of the economic situation in 2023. This is because the inflation the country is facing threatens consumer demand.
“Bank of America CEO Brian Moynihan told investors at a Goldman Sachs financial conference that the bank’s research shows ‘negative growth’ in the first part of 2023, but the contraction will be ‘mild’,” Reuters said.
The report also says that “Major banks’ shares fell sharply on the day after a lineup of top bankers outlined the risks for the economy. Bank of America slid more than 4%; Goldman Sachs Group Inc (GS.N) and Morgan Stanley (MS.N) each fell more than 2% and Citigroup Inc (C.N) slid more than 1%.”
Inflation worries banks
Inflation in the United States reached 7.7% in November, four-tenths of a percentage point lower than in September, according to data published by the Bureau of Labor Statistics (BLS).
In June 2022, inflation reached its highest figure in forty years, 9.1 %, although in July it dropped six-tenths to 8.5 % and since then it has been falling slightly at a rate of one or two-tenths each month, to the current four-tenths.