The CEO of a major bank says Trump's fiscal policies are making the US “the No. 1 place to invest” again.
Bank of America Chairman and CEO Brian Moynihan discusses policy and regulatory changes, the economic future in 2025, bank growth, the trajectory of interest rates and what he expects to see investing in artificial intelligence.
From mergers and acquisitions to regulation and a “competitive” tax structure, a top Bank of America executive shared an optimistic view of the U.S. economy during Trump's second administration.
“When you talk to people around here, around the world, (in business), this is the No. 1 place to invest. Not a little, but a lot,” said BofA Chairman and CEO Brian Moynihan. economic landscape during “Mornings with Maria” Interview from the World Economic Forum held in Davos, Switzerland.
“If you go back to the first Trump administration and the tax changes, it brought America's tax rate down to where it was competitive. America has always had… (a) big market, the biggest economy in the world, growing, etc.,” he said. he continued. “America has a good business environment in terms of talent, people, labor flexibility and all those kinds of things.”
“So you put it all together, it was a great place to invest. You come in and say now I'm going to deregulate and now I'm going to create an even better environment for investment.”
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Bank of America kicked off the 4th quarter earnings season with a surge in profits, reporting double-digit growth to $6.67 billion as investment banking fees rose 44% to $1.7 billion.
Bank of America Chairman and CEO Brian Moynihan is optimistic about the economic environment during the second Trump administration. (FOX Business)
Much of the banking industry expects more M&A deals to come to market President Donald Trumphe also plans to roll back regulations that hindered operational activity during the Biden administration.
Former Biden appointees from the Federal Trade Commission, the Federal Communications Commission and the Justice Department's Antitrust Division stopped almost all M&A activity Since the start of his term in 2021. Those who chose to oppose the regulatory restrictions faced protracted legal battles with the Biden contract police.
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“We were sitting here last year with business inflation and interest rates, but another big issue was the amount of regulation in small and medium-sized companies, the banking system and mortgage companies. And the feeling is that now it's going to be more normal,” Moynihan said.
“It went too far in the last administration,” he said. “We've tried to explain to them that it's going to cause them trouble… But I think it's more important that the overall economy is regulated, that the ability to get deals and that American companies feel a little bit comfortable that they can go now. Get out across the country and around the world and be where they need to be.” be king.”
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President Trump makes a major infrastructure announcement on his second day in office.
Moynihan explained that Bank of America's top research group expects 2.4% GDP growth for the US in 2025, with the M&A pipeline “full” and 20% The rise of IPOs.
“Therefore, this indicates that capital can be mobilized. So this all bodes well,” the chairman and CEO said. “Our team's enthusiasm for what's ahead is greater than it was in the fourth quarter because it was under the old regime.”
FOX Business' Eleanor Terrett contributed to this report.
