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Bank of America (BAC) CEO Brian Moynihan catches up with Yahoo Finance Executive Editor Brian Sozzi at the 2025 World Economic Forum in Davos, Switzerland. Moynihan outlines the expected impact of President Donald Trump's tariffs and the possibility of a Federal Reserve interest rate hike.
The CEO says that the Bank of America research team found that 10% to 15% tariffs wouldn't have a "big impact on [the] economy or inflation," though when "you start rising above that, it gets a little more interesting."
"Most of [the tariff impact] will pass through, and the customers will absorb it, and there'll be more wage demands, and it'll kind of work," Moynihan says. He notes, "[Tariffs] could be inflationary, but I think in the nominal levels they're talking about, widespread, [there is] less possibility [of inflation] than if it were more."
Tariffs and whether they could be inflationary "is a question that the Fed has to think about," Moynihan says, adding that the Fed has "got a new administration with a new set of fiscal policies, and the monetary policy has to respond to that."
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Check out Yahoo Finance's full interview with Moynihan here.
Click here for more of Yahoo Finance's coverage from the World Economic Forum in Davos.
This post was written by Naomi Buchanan.