(Reuters) -The Federal Reserve seems to be winning the inflation battle in the United States, Bank of America CFO Alastair Borthwick said, days after the central bank cut interest rates for the first time in more than four years.
"The Fed winning the inflation battle is important for the economy. It appears they are winning that battle," Borthwick said at a conference on Wednesday.
The comments echo Fed Chair Jerome Powell's view that the country's bout with high inflation was over. The central bank last week reduced rates by 50 basis points as it shifts focus to sustaining lower unemployment.
"We're back now to something more akin to a low growth, low inflation and potentially reasonable rate structure that should make it a pretty good environment for American banks," Borthwick said.
He also lauded the Fed's pledge to water down the highly contentious "Basel Endgame" proposals. The relaxed version of the plan would raise big banks' capital by 9%, compared with 19% proposed previously.
However, the Federal Deposit Insurance Corporation, a top banking regulator, is pushing back against the overhauled proposal, Reuters reported last week.