First of all, how's the U.S. economy doing actually? How's the U.S. consumer holding up?
Host
Brian Moynihan
The U.S. consumer is doing fine. For the month of November 25 versus November 24, spending was about 4.2-4.5%. The spending was solid and good and it's consistent with a growing economy. Our team has the economy growing next year at 2.4%.
Would a Fed cut help?
Host
Brian Moynihan
A Fed cut helps and team believes the Fed will cut next week. They came to it slowly because the inflation is still higher than the target rates... and sticky. The belief is because labor markets softer, they have lower rates.
Brian Moynihan
The question really is longer term. Our team thinks the Fed gets down to about a 3% Fed funds rate. The ten year rates, it's in for a quarter of four and a half, and that's a more normal rate structure for the United States.
And so what does that mean, that animal spirits are back in terms of also, you know, IPOs and M&A?
Host
Brian Moynihan
The activity kicked up after the new administration came in... you can get deals done. Our advice is you can get deals done and you're seeing the timeframe to approve a deal dropped by half. That's important because the idea of a deal being open for a year and a half is tough on the companies.
What's your take on the UK? JP Morgan's building massive building in London. Are you committed to London?
Host
Brian Moynihan
We have 6000 teammates. We just announced hiring a thousand teammates in Belfast... We're in London, we believe in London. The UK, London in particular is a great place for multinational international operations.