Bank of America reported second-quarter net income of $9.1 billion, up 27% from a year ago, and CEO Brian Moynihan described an economy that is holding up better than expected even as the bank's own research team tracks inflation near its highest level since 2023. Consumer spending grew about 5% year over year in the first half of 2026 and picked up to 6% or more in the second quarter, with spending even higher in June and July, according to transaction data from the bank's 39 million checking accounts. That resilience is keeping core PCE inflation tracking at 3.3% year over year, leading BofA economists to call for 75 basis points of rate hikes over the next 12 months, nearly double what markets are pricing. The bank also raised its 2026 U.S. GDP growth forecast to 2.2% and expects global growth of 3.2% this year, rising to 3.5% in 2027. Foreign investors bought $55.8 billion in U.S. corporate bonds in May and $91.9 billion in Treasuries, helping absorb some of the pressure from elevated yields.
Bank of America CorpBank of America reported Q2 net income up 27% YoY, strong earnings beat.