Bank of America CEO: Consumers Spending Less Than Last Year

Customers are spending "at a rate of growth of this year over last year, for July and August so far, about 3%," Bank of America CEO Brian Moynihan told CBS.

Appearing on "Face the Nation with Margaret Brennan" on Sunday, Moynihan elaborated that this 3% is half the rate that it was last year at the same time.

"So the consumer has slowed down. They have money in their accounts, but they're depleting a little bit. They're employed, they're earning money, but if you look at — they've really slowed down," Moynihan said.

Regarding what the Federal Reserve should be doing in light of the turbulent financial markets last week, Moynihan said that "the Fed is in a position they have to be careful that they don't slow down too much. Right now, where they are spending at is consistent where they spent in '17, '18,'19, a lower inflation, a more normal growth economy."

Moynihan added that Bank of America Research does not have a recession predicted.

"Last year, this time, it was a recession. This year we talked about now there's no recession," Moynihan said.

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