BofA's Moynihan on federal debt: America needs to get "eyes and stomach" aligned

• "We're in relatively good times, and have been," Moynihan says. "Policy choices have to be made: revenue-side issues, like taxation, to spending-side issues, and the efficiency of the government itself. All of those things have to be on the table."

The big picture: The deficit is projected to hit $2 trillion this year. Over the next decade, the deficit is expected to amount to almost 7% of GDP — well above the 3.7% average of the past half-century.

• Both presidential campaigns are pitching plans that would add trillions to the national debt, though Trump's plans would do so at a faster rate.

Moynihan says the unpredictability of the economy is as big a factor as the upcoming presidential election when it comes to business owners delaying investment decisions.

• "People delaying things has as much to do with the uncertainty of final demand for their products and services in the economy," Moynihan says.
• Most economists predict the economy will continue to grow at a reasonable rate, but "it ain't sure yet," Moynihan says. "Until it is, people are saying, 'let me just make the decisions that I have to make, not that I want to make.'"