During an earnings call this week, Bank of America CEO Brian Moynihan and CFO Alastair Borthwick have noted that, even with more investment from consumers, prices are not expect to go down anytime this year. In fact, they expect elevated inflation to stick around through the end of 2022.
Bank of America chief investment strategist Michael Hartnett added that inflation could lead to an economic downturn in 2023, including “inflation shock worsening, rates shock just beginning,” and “recession shock coming.”
Inflation jumped to an all-time high last month, reaching 8.5 percent – the highest it’s been since 1981. As a result, gas prices are sky high, some food items are high in demand, and housing costs are beyond reach for some home buyers.
“We’re headed for a recession in 2023, and though it won’t be as severe as what we experienced back in 2008, it’s still going to hit most of America hard. The best thing the government can do right now get out of the way. Otherwise, we could be in for a world of trouble that will be tough to recover from.” Blake Harbin, CEO of Houzzle Financial.
Discussion Qs:
- What is the Federal Reserve trying to engineer?
- US consumers are showing trends of lower credit balances and high bank account deposits, why won’t that help normalize inflation?
- You are seeing this impact home sales, interest rates, and purchases in general, can you share your insights?
- What is it going to take to get back “to normal”? Do you think the Bank of America executives are right?
- Are there any points you can give to help Americans weather this financial storm?
GUEST: Blake Harbin, CEO of Houzzle Financial, a top mortgage lending company in the Southeast.
MEDIA CONTACT: To schedule an interview with Blake Harbin, contact Tamara Colbert, c: 626-244-5571, e: tamara@ohsweetliberty.com
