The US economy is “dead in the water” despite GDP growth in the third quarter, Steve Forbes said. He noted that “tough times are coming” given the still high inflation and the global energy crisis. “Compared to the 2.6% […] the economy is dead in the water,” Forbes told Fox Business.
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The US economy is “dead in the water” and inflation continues to eat away at consumers’ wallets, according to Steve Forbes.
In an interview with Fox Business, the chairman and editor of Forbes crushed President Joe Biden’s optimism about the US economy. This is despite the country’s gross domestic product beating expectations in the third quarter.
According to the latest figures, the US economy grew at an annualized rate of 2.6% in the third quarter of 2022. The increase came after two consecutive quarters of decline.
He said Biden’s optimistic view of the US economy was wrong and made him look like a comedian, but “the audience isn’t laughing.”
“In terms of 2.6%, if you look at final sales, which economists do, the economy is dead in the water,” he told Fox Business on Friday.
Forbes said the economy was growing at more than 4% when Biden took office. “Look at it today,” he said, adding that “tough times are coming.”
He also addressed the 40-year high inflation that plagues the US economy, saying it only rose 1.5% when Biden took office.
The latest September figures showed inflation rose 8.2%, beating the 8.1% rise predicted by economists, with house prices fueling the rise.
The fight against inflation in the United States is proving an uphill battle for the Federal Reserve, which has raised interest rates at the fastest pace in history. More hikes are expected at the Fed’s next meeting on Wednesday, with economists expecting the central bank to hike the benchmark rate another 75 basis points.
With prices rising at such a rapid pace, Biden suggested American consumers steer clear of buying branded products like “Kellogg’s Raisin Bran.”
“That’s not the point,” Forbes said. “The problem is the dollar goes up and down like a yo-yo, the Federal Reserve has done a bunch of stuff, and the Biden administration has thrown sand into the wheels of this economy,” he said. -he declares.
He added that the Biden administration is making a global energy crisis worse as its policies prevent the United States from producing more oil.
“We are going to have oil and gas shortages next year. We think we are going to have a tough winter this year, wait until 2023,” Forbes said, adding that the United States could produce more than 2 million barrels of oil. one day.