The CEO of Bank of America said their analysts predict the economy won’t bounce back to where it was before the coronavirus until “late next year.”
CEO Brian Moynihan said on CBS’s “Face The Nation” that the forecasts changed “dramatically” in the past five weeks as the U.S. economy went from likely having low growth to an expected 6 percent loss for 2020.
“But the key is to understand the quarterly flow of that: A deep recession environment in the second quarter, a less deep in the third quarter and then growth in the fourth quarter,” he said.
For 2021, the predictions show a 6 percent growth in the U.S. economy, he said.
“Our experts think it’s late next year the economy gets back to the same size it was prior to this,” Moynihan said.
Moynihan said right now, consumer spending is flat compared to this point last year, but he said this year’s numbers show a “tale of two pieces of time” with high spending earlier in the year. He said consumer spending is “starting now to grow in certain areas.”
“That actually provides some hope that the economy opens up in pieces and safely you’ll see that consumer spending continue to grow which will help fuel the U.S. economy,” he said.
He added that the stimulus bills, the sale of personal protective equipment, unemployment benefits and the stimulus checks are entering the economy, and “we’re starting to see the effect of those.”
Unemployment numbers reached at least 26 million in five weeks, according to Department of Labor statistics.