Context:

Bank of America CEO Brian Moynihan says consumer spending and credit are holding up despite higher gasoline prices, citing August spending about 4% higher than a year earlier and implying the economy remains on a solid growth path. He notes that credit metrics are strong and that businesses continue to borrow and invest, though higher rates are raising short-term borrowing costs for small and midsize firms. With energy prices volatile and Brent crude briefly above $100, the risk is that elevated fuel costs could pressure household budgets, though current data suggest limited near-term impact. The outlook remains cautiously positive as lenders and borrowers navigate a higher-rate environment and the possibility of continued energy-market volatility.

Dive Deeper:

• Moynihan spoke on CNBC's Mad Money, signaling that Bank of America's real-time data show healthy consumer spending and credit trends even as fuel prices rise.

• He highlighted August spending being about 4% higher than August of the previous year, with a prior quarter showing roughly a 5% year-over-year increase, framing this as continued economic momentum.

• Energy-market tensions pushed Brent crude over $100 per barrel, intensifying concerns that higher gas prices could constrain household budgets and consumer spend.

• According to Moynihan, credit statistics are at strong levels, and while card balances are higher, the expansion aligns with a larger economy, suggesting a recovery back to trend rather than a deterioration.

• Businesses are continuing to borrow and use credit lines, but higher interest rates are elevating the cost of short-term financing, particularly for smaller firms, which Moynihan identified as the main impact of rising rates.