Bank of America's CEO, Brian Moynihan, expressed optimism about the future of the American economy, stating that the financial giant no longer believes a recession is looming. In an interview with CBS's Margaret Brennan on "Face the Nation," Moynihan indicated that the Biden administration and the Federal Reserve have successfully achieved a "soft landing" after grappling with inflation concerns in recent years.

Moynihan highlighted that while the economy has been slowing down, consumer spending remains on par with pre-pandemic levels. He emphasized the expertise of Bank of America Research, stating that they no longer have any recession predictions. This time last year, the situation was quite different, with a recession on the horizon.

While acknowledging a slowdown in consumer spending, Moynihan pointed out that consumers are still feeling the pressure of high interest rates. Despite this, signs are generally positive, and he believes the Federal Reserve needs to tread carefully to avoid slowing down the economy excessively.

Bank of America predicts two interest rate cuts by the Federal Reserve this year, one in next month's meeting and another in December. Additionally, the bank foresees four rate cuts in 2025. These predictions differ from the outcome of the Fed's July meeting, where rates were kept unchanged, contrary to market expectations.

Moynihan emphasized the process of returning to a normal economic state, acknowledging that it will take time for people, both on the corporate and consumer side, to adjust to rate cuts. Last week's weak jobs report and the absence of a rate cut initially caused a drop in American markets. However, they have since recovered, and mortgage rates have also witnessed a swift decline as vendors anticipate a possible Fed cut.

Overall, Moynihan's comments reflect an optimistic view of the American economy, with the Bank of America CEO suggesting that the nation is heading towards a period of economic growth while steering clear of a recession.