Basri Caneri 
Bank of America (BofA) CEO Brian Moynihan said he thinks the US Federal Reserve(Fed) will keep interest rates unchanged this year and through 2025. Speaking at a conference in Washington, Moynihan said that it could take several years to bring inflation under control and that the Fed could therefore continue its tight monetary policy until 2026.
Bringing Inflation Down Will Take Time
According to Moynihan, the Fed’s 2% inflation target is not easily achievable. By keeping interest rates unchanged and maintaining tight monetary policy, central bank officials expect markets to cool and price pressures to ease. However, Moynihan stated that this process may take longer than expected and investors should not expect a quick rate cut.
Call for Simpler and Clearer Regulation for Banks
Moynihan said that regulation of the banking sector in the US has become too complex, making it difficult for banks to operate in a stable manner.
“Give us a regulatory framework that makes sense and make it permanent. We can’t reassure our clients for the long term because of the ever-changing rules.”
BofA CEO stated that uncertainties have increased, especially regarding money laundering (AML), customer recognition (KYC) and mandatory reporting obligations, and that they could not even explain to customers why some accounts were closed.
“Debanking” Debates between Trump and Banks
BofA and JPMorgan will lobby the White House and Congress to counter political accusations against banks by former US President Donald Trump and some Republicans.
Trump has accused big banks of closing the accounts of conservative clients and denying services to industries such as arms manufacturers and fossil fuel companies. Republicans have called this “woke capitalism,” while banks say they are not closing accounts for political reasons and that the process is driven by regulatory rules. Moynihan emphasized that this issue is not political, but is entirely dependent on banking rules.
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