BAC did a nice job displaying its "responsible growth" mantra highlighted in lower consumer loan risk and balance sheet integrity. NII growth has always been its strong point and should bridge it through the oncoming recession, even if credit losses rise off of historical lows. We continue to be a Buy on the stock. Sell on bonds with further credit spread widening. And our view of Low regulatory risk and counterparty risk.

ALM is front and center for big bank risks as the Fed fights a rates war against inflation. Positive expectations for fatter margins and rising NII is being offset by a slower to recession economy that could stymie the rate impact improvements. 

Fed steps up to the tightening plate this early afternoon, and market gauging whether it will be a 50 bps move or a muted 25 bps. Dr. Scott reviews some of the key points to consider with his view placed on 25 bps.