US Consumers Are Spending Heavily And Weak Inflation Will Prevent Hike.

Current US

Near the highest level since the end of the recession period, the stock market is at a record high level. Wage growth has reached the highest level in the economic recovery period, while the unemployment rate has dropped to below 5%.

Since consumer spending accounts for about 70% of the US economy, growth in spending is good news for economic growth, and this is also an exciting thing from the mouth of CEO, one of the largest banks in the United States.

Moynihan, chief executive of Brian Moynihan, said in an interview on Thursday (September 8th) that the expenditure of Merrill Lynch's credit card and debit card customers is getting higher and higher, and he is very confident of American consumers.

Moynihan pointed out that compared with a year ago, consumption loans had basically not changed, but they were much better than 10 years ago.

From the data of credit card and debit card of Merrill Lynch, consumers are spending a lot, thus showing a strong economic picture.

He added that so far this year, Bank of America Merrill Lynch's debit card and credit card customers' expenditure increased by 4.7% compared with the same period last year, and this growth rate is accelerating.

Therefore, consumers' current

It's very good, and so is expenditure.

In addition, MOI Ni Han also said that consumer confidence may face a "stumbling block" does not seem to be a reality.

He pointed out that if there is anything that might slow this growth, that is market confidence.

Market confidence is not growing as fast as it wants, but it continues to grow.

It's also a problem.

But wages are rising, but they are not up to expectations.

Therefore, consumers are still very constructive.

According to moyni Han, the good news will only get better and better because the expenditure of Merrill Lynch credit card and debit card customers is getting higher and higher over time.

From August, consumer spending on debit cards and credit cards hit a year-on-year increase.

He added that as investors seek profits, money flows into the stock market.

He believes the Fed will not raise interest rates soon because inflation is still weak.

The US stock market continues to rise because of low or even negative earnings, except for the stock market, other pactions are almost unprofitable.

But he points out that higher interest rates make banks more profitable in lending.

The US dollar Merrill Lynch earnings will increase by about $1 billion per 25 basis points.

Although it is not expected to raise interest rates temporarily, banks have already prepared for raising interest rates.