Citizens CEO Says Consumers Are Cautious, But Spending

Summary

Citizens Financial Group CEO Bruce Van Saun gives a resilient US economy view, citing GDP growth near 2.5%, low unemployment, gradually declining inflation, and open capital markets. He sees AI/data center funding as a broadening business opportunity and says consumers remain cautious but still spending. He also does not expect the Fed to raise rates soon, viewing inflation as supply-driven and likely temporary.

• US economy seen as resilient with GDP growth ticking up toward ~2.5%.
• Unemployment steady in low 4s and inflation on a gradual declining path.
• Capital markets open and funding/CapEx demand broadening beyond AI/data centers.
• Upper-income consumers supported by strong stock and housing wealth; lower-income consumers employed and selectively spending.
• Higher gasoline and energy costs absorbed without derailing consumer spending.
• Fed rate hikes not expected soon; supply-side inflation seen as likely temporary.