Bank of America CEO Warns of Economic Slowdown Amid Government Shutdown
New York, Tuesday, 28 October 2025.
Bank of America CEO Brian Moynihan cautions that the ongoing U.S. government shutdown could slow economic growth, impacting consumer confidence and business investments despite current spending levels.
Consumer Spending Amidst Economic Concerns
Amidst the economic challenges posed by the ongoing U.S. government shutdown, Bank of America CEO Brian Moynihan has highlighted the resilience of consumer spending as a key economic driver. Despite potential strains, spending has grown by 5 to 5.5% in October 2025, with middle-income households showing growth, albeit at a slower rate than their higher-income counterparts [1].
Potential Economic Slowdowns and Inflation Pressures
The current economic environment is characterized by a complex interplay of factors, including rising inflation and a government shutdown. The Consumer Price Index (CPI) reported a 0.3% increase in September, reaching an annual rate of 3%, marking the highest level since January 2025 [1][2]. As these pressures mount, Moynihan warns that the continuation of the government shutdown could dampen consumer confidence and investment momentum [1].
Market Reactions and Employment Concerns
Despite an impressive 35% rise in the S&P 500 since April 2025, analysts are revising forecasts due to weak job data and rising inflation [2]. The U.S. unemployment rate reached its highest level since 2021, with nearly 1 million layoffs reported through September 2025, a 55% increase from the previous year [2]. These developments underscore Moynihan’s concerns over potential economic slowdowns linked to the prolonged shutdown [1].
Implications of Government Shutdown on Social Programs
The government shutdown poses significant risks to social programs, with SNAP benefits set to run out on November 1, 2025, unless a bipartisan agreement is reached [3]. This potential halt in benefits illustrates the broader impact of the shutdown on economic stability and consumer spending, highlighting the urgent need for resolution to prevent further economic disruptions [1][3].