BofA CEO Cautions Fed Chief: Don't Bank on Burning Out Consumers to Curb Inflation

Bank of America CEO Brian Moynihan warns Fed's Jerome Powell not to rely too heavily on resilient consumers to prop up the economy, as they are starting to "burn out" from inflation and rate hikes
Consumers have defied expectations by continuing to spend, leading forecasters like Vanguard to upgrade economic growth outlooks and push back recession predictions
But Moynihan cautions that consumer spending is clearly slowing - from 10% growth last year to 3-4% now - and will likely continue to slow
BofA economists predicted last March that the Fed would have to raise rates until they find the "point of pain" for consumers to get inflation under control
Moynihan tells Powell the Fed has room to keep rates restrictive, but should be "mindful" not to overshoot and push consumers too far