Bank of America CEO Brian Moynihan assessed the current condition of the U.S. economy, trade, and tariffs during an appearance on ‘Special Report.’ The White House is actively working to finalize several trade agreements amid a 90-day suspension of tariffs announced by President Donald Trump, which has led to increased volatility in U.S. markets. Moynihan, a prominent U.S. bank executive, suggested that establishing a “blueprint” deal could significantly “calm the market down.”
On Tuesday, White House Press Secretary Karoline Leavitt mentioned that the Trump administration has drafted “18 proposals on paper” for trade deals. There is substantial anticipation regarding when these deals will be finalized. According to Moynihan, two primary objectives could be achieved with a trade deal. Firstly, it would provide a structured plan or “blueprint,” and secondly, it would demonstrate the feasibility of reaching agreements.
Moynihan indicated that if rumors of certain countries nearing deals are true, such developments could help alleviate market instability. This is because they would indicate a potential resolution path.
President Trump’s tariff strategies have significantly impacted the U.S. economy and global trade dynamics. A temporary halt of 90 days was placed on reciprocal, “Liberation Day” tariffs targeting numerous nations, excluding China. This marked a notable shift from earlier statements that emphasized there would be no pause, only negotiations. Conversely, the tariff on China has been increased to 145% by the administration.
The Trump administration is now actively engaging in discussions with foreign countries to secure deals that are advantageous to the U.S. and aim to reduce the country’s persistent trade deficit. Despite the uncertainty surrounding tariffs and trade agreements, some economists have revised their growth projections downward. However, Moynihan argued that the U.S. economy remains in “reasonable shape.”
Bank of America’s research team, according to Moynihan, does not anticipate an impending recession, though they foresee a significant slowdown in economic growth. Moynihan noted that this slowdown requires careful observation, as the economy is expected to decelerate from a 3% growth rate in the third quarter of 2024 to under 1% growth in the current quarter, which represents a substantial reduction in a large economy.
While the Trump administration has emphasized its transparency regarding policy matters, Moynihan suggested that Americans struggle to understand how various policies interconnect, leading to some prevailing concerns until more clarity is achieved.
Fox Business’ Greg Norman and Fox News Digital’s Emma Colton contributed to this report.
