BofA's Moynihan: Consumer Spending Slowing, Still Strong

The video discusses the resilience of the American consumer, highlighting a 10% increase in spending compared to last year. Despite inflationary pressures and interest rates, consumer spending remains strong. Account balances are stable, and credit quality is high, with delinquencies lower than pre-pandemic levels. This resilience poses challenges for the Federal Reserve as it attempts to slow down consumer spending.

What was the percentage increase in consumer spending in the third quarter compared to the previous year?

• 20%

• 15%

• 10%

• 5%

How did consumer account balances in September compare to those in August?

• They increased significantly

• They decreased slightly

• They remained flat or slightly increased

• They decreased significantly

How do current consumer account balances compare to pre-pandemic levels?

• They are multiples higher than pre-pandemic levels

• They are about the same as pre-pandemic levels

• They are slightly higher than pre-pandemic levels

• They are lower than pre-pandemic levels

What is the current state of payment delinquencies compared to pre-pandemic levels?

• They are much higher

• They are about the same

• They are much lower

• They have not changed

What challenge does the strong financial health of consumers pose for the Federal Reserve?

• It makes it easier to increase interest rates

• It reduces the need for monetary policy adjustments

• It simplifies the management of inflation

• It complicates efforts to slow down consumer spending