“‘Yes, prices are up, but wages are up, unemployment is down, people are earning money. And so that’s the tug-of-war that’s going on. And they’ve moved the consumer to a different level of spending and capabilities. Will that hold is going to be an interesting question.’”
Moynihan said Bank of America BAC, -0.97% account holders are spending about 4% to 5% more out of their accounts than they did a year ago, but that the pace has dropped from 9% to 10% growth in the prior year. Consumers are roughly in the same place as they were in 2019, before the start of the COVID-19 pandemic, but the investment rate has slowed because consumers remain more careful, he said.
Asked about the pending $35 billion acquisition of Discover Financial Services DFS, -1.37% by Capital One Financial Corp. COF, -1.43%, which would create the country’s largest credit-card company, Moynihan said he’s not worried about consolidation in the business.