Bank of America CEO Moynihan warns of deep recession in 2023

Despite other bank bosses warnings that high inflation would sink the economy, Bank of America CEO Brian Moynihan said a deep recession is likely to occur in 2023.

Moynihan told Cavuto: Coast to Coast in an interview on Tuesday that the US is entering a deep recession, despite the fact that inflation is a serious problem.

We have to get inflation under control, and that's what the Fed is trying to do. You're seeing the most interest rate-sensitive parts of the economy take the hit first. When asked if the Federal Reserve would raise interest rates again, Moynihan told Neil Cavuto that the powerful agency had little choice.

He said that they're going to raise rates, and the rate hikes may last longer than people think. Moynihan argued that the American consumer is in very good shape even though inflation remains high. According to an NBC News poll, 68 percent of US voters believe that the economy is currently in a recession.

According to the poll, 58% of Americans believe that America's best years are in the past, and only 35% believe that the best is yet to come.

A number of other banking titans have given far more dire warnings on the economy.

Another big bank CEO, Jamie Dimon, of JPMorgan Chase, said Tuesday that a hurricane was brewing.

Even that may not be enough, Dimon told CNBC that policymakers could lift interest rates as high as 5% next year, and that even that may not be enough. He wasn't the only one who issued warnings. In a separate interview with CNBC, Goldman Sachs CEO David Solomon told Americans to expect volatility on the horizon.

Moynihan replied directly to Dimon's comments, telling Cavuto that the Fed would probably have to grind at inflation in 2023 and 2024. He expressed confidence in consumer strength.

The consumers of our country have more money," Moynihan stressed Tuesday.

The gross domestic product GDP contracted for the second consecutive quarter in a row from April-June, which has caused the economy to enter a technical recession.

Moynihan also touched on the topic of criptocurrencies after FTX, a major once worth $32 billion that controversial entrepreneur Sam Bankman- Fried founded, filed for bankruptcy last month.

We're not giving up on criptocurrency. We were never a fan of cryptocurrencies. The Bank of America CEO told Cavuto that they were for the technology that we were looking for, the technology that we were for is ledger technology.

He added that those are two vastly different things.