CEO of the Bank of America: The US economy remains "very strong" and it is not suitable to cut interest rates at the moment.

Charles Scharf, CEO of Wells Fargo, stated that despite ongoing conflicts in Iran, the US economy remains "very strong." At the same time, he emphasized that lowering interest rates now is "the wrong move" given the current geopolitical risks. Scharf stated that loan demand is strong, consumer default rates are under control, and businesses are in good financial shape entering this period. He said, "Although households are adjusting to higher gasoline prices by cutting back in other areas, consumer spending continues to grow by 5% to 7% year-on-year." He emphasized the broader inflation pressures affecting businesses and gave an example of a retail clothing industry client reflecting a 25% increase in prices of polyester and nylon. While many companies are temporarily protected by long-term contracts, Scharf warned that if oil and gas prices remain high, prolonged conflicts could cause "more serious damage" to the economy. Regarding the issue of Federal Reserve independence, Scharf strongly defended the Fed's autonomy. He said, "The independence of the Federal Reserve is crucial," and the committee's voting process creates an appropriate balance between fiscal and monetary policy. Although US presidents have always voiced their opinions on monetary policy, Scharf stressed the importance of independence during the "actual decision-making stage." Scharf stated that Federal Reserve voters and the US Treasury Secretary both agree that keeping rates unchanged is a prudent move until the situation in Iran becomes clear. He explained, "There is indeed a certain risk unless there is a clear sign of an end to the conflict in Iran." He described the cautious approach as a "wise move."