Even though the negative effects are already being felt, Bank of America CEO Brian Moynihan has a good feeling about Washington's ability to solve the looming fiscal cliff.
Moynihan made his remarks Tuesday when he kicked off BofA's 20th
annual Bank of America Merrill Lynch Financial Services Conference at
the Plaza Hotel in New York. He spoke for about 30 minutes, providing an
overview of his well-documented efforts to raise capital, cut expenses
and streamline the company.
He said the economy is a tale of two stories — the economic
fundamentals, and the short-term risk associated with federal budget
cuts and tax increases set to begin Jan. 1, known as the fiscal cliff.
It's expected to sap as much as 4% growth out of the economy.
"We continue to see in all of data we have and what our experts
continue to tell us is we see a continued slow steady recovery. Our
economists are only forecasting about 1% annualized growth through this
quarter but the fundamentals underneath they continue to strengthen,"