Bank of America Corp.’s commercial customers are already reacting to the “fiscal cliff” that looms over the U.S. budget by putting off purchases, Chief Executive Officer Brian T. Moynihan said.
Businesses have held back on buying capital goods until the outcome of negotiations in Washington becomes clear, Moynihan said today at a New York investor conference sponsored by Bank of America. Tax increases and spending cuts could equal 4 percent of gross domestic product, he said.
The Standard & Poor’s 500 Index had its biggest weekly decline since June after President Barack Obama’s re-election set up a budget showdown with the Republican-controlled House of Representatives. Market swings may continue until the sides agree to a solution, Goldman Sachs Group Inc. CEO Lloyd C. Blankfein said today at the conference.