(RoyalPatriot.com )- According to Bank of America Chairman and CEO Brian Moynihan, while consumers as spending at a faster rate, there is still concern about how rising inflation and the ongoing supply-chain problem impact the economy heading into winter.
In an interview with the Associated Press, Moynihan predicted that robust consumer spending should drive economic growth in 2022, but the decline in consumer confidence due to rising prices and lack of supply are compounding frustrations.
While consumers’ wages are higher, Moynihan explained, it is concerning that rising prices on essentials like food, energy, and housing are rising faster than wages. Compounding the problem is the uncertainty fueled largely by the ongoing COVID response.
Moynihan, who has been tracking consumer spending for fifteen years, said currently Americans are spending at a faster rate than he has ever seen. Despite skyrocketing prices, Moynihan said spending on Bank of America’s debit and credit cards has been surging as the economy drags itself out of the recession created by the government’s COVID response.
Unfortunately, that trend may face a significant speed bump. State leaders and the federal government have set off another panic over the far milder omicron variant of COVID-19. Cases of the virus are on the rise, though hospitalizations remain far lower.
Despite the milder symptoms of omicron, governments are reacting in the same way they did for the far deadlier initial strain. Schools are closing. Some states are re-imposing mask mandates. And in New York State, the unelected governor is considering redefining “fully vaccinated” to require a booster shot.
President Biden is further fueling the panic by offering portents of death, gloom, and misery heading into winter.
On Saturday, press secretary Jen Psaki announced that President Biden is scheduled to address the country on the administration’s COVID response. Biden will announce “new steps” the White House will take while “issuing a stark warning of what winter will look like” for all the Americans who refuse to get vaccinated.
And all this overreaction is going to impact the US economy, especially if Democrat-run states once again start locking down.