A central bank CEO says Trump’s monetary policies are making the US ‘the number one place to invest’ again
Bank of America Chairman and CEO Brian Moynihan talks about anticipating policy and regulatory changes, the future of the economy in 2025, banking growth, rate trajectory and investment in artificial intelligence.
From mergers and acquisitions to deregulation and a “competitive” tax structure, Bank of America’s chief executive shared an optimistic picture of the US economy under Trump’s second administration.
“When you talk to the people who are here, from all over the world, [in] business, is the No. 1 to invest in. Not a little, a lot,” said BofA Chairman and CEO Brian Moynihan about the state of the US economy during an interview on “Mornings with Maria” from the World Economic Forum in Davos, Switzerland.
“If you go back to the first Trump administration and the tax reforms, that lowered America’s tax rate to where it was competitive. America has always had… [a] the largest market, the largest economy in the world, growing, etc., “continued.” America has good business conditions in terms of talent, people, labor flexibility, all those kinds of things.”
“So you put all that together, it was a great place to invest. You go in and say now, I’m going to reverse the policy, and now I’m going to create even better investment conditions.”
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Bank of America kicked off the Q4 earnings season with rising profits, reporting a double-digit hit of $6.67 billion, as its investment banking income rose 44% to $1.7 billion.
Bank of America Chairman and CEO Brian Moynihan is optimistic about the economic environment under Trump’s second term. (FOX Business)
Most of the banking industry expects more M&A deals to be sold under President Donald Trump, who also plans to roll back rules that have limited transaction activity during the Biden administration.
Former Biden appointees from the Federal Trade Commission, Federal Communications Commission and the Justice Department’s Antitrust Division have halted nearly all M&A activity since their term began in 2021.
NYSE President Lynn Martin joins ‘Mornings with Maria’ to discuss market trends and his outlook for 2025 as the Trump administration begins.
“We were sitting here last year, the issue of inflation and business interest, but another big problem was the law that regulates small and medium-sized companies, the banking system, and loan companies. And the feeling is that now it’s going to be back to normal,” Moynihan noted.
“It went too far in the last administration,” he added. “We tried to explain to them what was going to cause them problems… But I think it’s very important that the economy as a whole feels a little bit more relaxed about the overall regulations, the ability to make deals, and American companies can now go outside the home and around the world and be the kings that they should be.”
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President Trump made a major infrastructure announcement on his second day in office.
Moynihan explained that Bank of America’s senior research team expects GDP growth of 2.4% in the US by 2025, the M&A pipeline is “full” and a 20% increase in IPOs.
“So, that means the capital can work. So that all bodes well,” said the chairman and CEO. “Our team’s excitement about what’s to come is much greater than it was in the fourth quarter because that was the case under the old regime.”
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FOX Business’ Eleanor Terrett contributed to this report.
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