Bank of America's Monihan: Financial conditions are tightening

<p>Bank of America (BAC) CEO Moynihan's comments:</p><ul><li>Predicts a soft landing for the US economy.</li><li>Notes a slowdown in consumer spending.</li><li>Highlights that financial conditions are tightening.</li><li>Commercial customers are not borrowing as much.</li><li>Does not see massive consumer delinquencies</li><li>Higher capital also will increase cost of doing business</li></ul><p>Over the weekend JPMorgan Chase CEO DImon commented, saying: </p><ul><li>Expressed concerns about the unsettling and unpredictable geopolitical situations in the Middle East and Ukraine.</li><li>Despite a strong U.S. economy with fiscal and monetary support, he considers these geopolitical matters among the most serious since 1938.</li><li>He emphasized that the current geopolitical landscape is reshaping the world and its economy, impacting crucial aspects such as freedom, democracy, food, energy, and immigration.</li></ul><p>Dimon has previously warned about the economic threat posed by heightened geopolitical tensions, predicting potential interest rate increases as high as 7%, a challenge not seen since World War II.</p><ul><li>He highlighted that the invasion of Ukraine is taken seriously by the United States and could affect global relationships until a resolution is reached.</li></ul><p>Meanwhile, Blackrock CEO Larry Fink said:</p><ul><li>Geopolitical turbulence, including Israel-Hamas and Russia-Ukraine conflicts, is significantly influencing our lives.</li><li>There is a rising sense of fear and decreasing hope globally.</li><li>This fear could potentially lead to a weaker economy.</li><li>Increased fear tends to result in reduced consumer spending and investment.</li><li>Emphasized the importance of hope in addressing current global challenges.</li></ul><p>Fink also noted a lack of hope in the economy during a speech at the Berlin Global Dialogue forum in September.</p>

This article was written by Greg Michalowski at www.forexlive.com.