The Home Depot co-founder denied Joe Biden’s claim that the United States is not in a recession, says the economy is going down, and added that the president’s economic policies were responsible for increasing the ‘inflation.
Ken Langone appeared on Fox’s “Your World with Neil Cavuto” on Friday and said, “That’s where we are. And anyway, I don’t care how you want to define it.
‘We can agree on one thing. The economy is retreating. He’s going down. Now, if you want to call it a recession or not, she plays with words.
“But the fact is, the economy is collapsing. In every place I look, I see signs of retreat. … This is serious stuff. And we’re in a recession. ‘
Langone said President Biden was a source of the “withdrawal” and blew his attention on green energy policies, which he says ended the energy independence achieved by the United States under Donald Trump, by postponing the House. Bianca in the arms of oil-rich Arabia Arabia.
‘In many respects, it was caused by the policies of the [Biden] administration, ‘he said. “Today the president goes hat in hand to Saudi Arabia and begs them to lift the pipes.”
Langone, a native of New York, helped found Home Depot in 1974 and is a well-known donor to the Republican Party.
Home Depot co-founder Ken Langone appeared on Fox to discuss the economy and backed up his claims about the recession, saying “the fact is that the economy is going down”
Quarterly GDP growth has been observed for the past four years, showing the pandemic recession in early 2020 and the current cycle of contraction
Langone said President Biden was a source of the “withdrawal” and blew up his management of energy policies. The New York entrepreneur is a well-known donor to the Republican Party.
Langone said he is keenly interested in inflation because it “affects low-income people more than anyone else.”
Earlier this week, Biden tried to argue that the US was not in a recession. You made the claim despite figures showing two consecutive quarters of negative economic growth – the classic definition of a recession.
Langone’s warning comes as a key measure of US inflation has risen again, hitting a new four-decade high as the Federal Reserve attempts to address double threats of rising prices and a shrinking economy.
The Personal Consumption Expenditure Price Index (PCE) rose 6.8% in the 12 months to June, the largest increase since January 1982 and a jump from May of 6.3%.
The PCE measure, which is preferred by the Federal Reserve for its flexible 2% target rate, is an alternative indicator to the more well-known consumer price index, which jumped 9.1% in June from a year ago.
Both measures are released monthly and use different methods to calculate the price increase for the average consumer.
Excluding volatile food and energy components, the PCE price index jumped 0.6% from the previous month after rising 0.3% in May, another sign that inflation is soaring.
The so-called PCE core price index rose 4.8% yoy in June after rising 4.7% in May.
The Commerce Department report on Friday also showed that consumer spending, which accounts for more than two-thirds of US economic activity, rose 1.1% last month from May, more than expected.
Rising consumer spending was nominally good news for the economy, but nearly all of the increase is due to inflation, the report revealed.
Adjusted for inflation, consumer spending only increased by 0.1 percent in June compared to the previous month. This was still a gain from the May inflation-adjusted change of -0.3%.
The latest data comes on a week of turbulent economic news that is forcing the Federal Reserve into a dilemma as monetary policy weighs.
The Fed aggressively raised its benchmark interest rate to counter inflation, adding another oversized rate hike of 0.75 points on Wednesday.
But the central bank faces tough choices on whether to continue raising rates after new data on Thursday showed the US economy contracted for the second consecutive quarter.
U.S. gross domestic product shrank 0.9% in the second quarter, after a 1.6% decline in the first quarter
Higher interest rates are the Fed’s primary tool for fighting inflation. But the rising cost of borrowing money also discourages consumers and businesses from borrowing, reducing spending and putting pressure on economic growth.
Gloomy economic news follows that this week sparked a furious debate over whether the US has entered a recession.
The Commerce Department said in a report Thursday that U.S. gross domestic product shrank 0.9% in the second quarter, after a 1.6% decline in the first quarter.
Two consecutive quarters of GDP contraction is the informal and long-standing definition of a recession, but the Biden administration insists that the US economy does not qualify as recessive.
President Joe Biden has insisted the US economy is “on the right track” despite the slowdown, touting the strong job market.
“It doesn’t feel like a recession to me,” he said in a White House commentary.
The unemployment rate in the United States has been seen since 1948, with periods of recession faded to gray. There has never been a recession that has not been accompanied by a rapid rise in unemployment
The economy has added more than 1 million jobs in the past three months, even as economic growth has slowed, in another confusing signal.
It is true that most economists are still reluctant to label the current situation as a recession.
Unemployment remains near a five-decade low of 3.6% and the economy has been creating jobs at a rapid pace in recent months.
There has never been a recession in the United States that has not been accompanied by a rapid rise in the unemployment rate.
However, the second consecutive quarter of negative growth was a sad warning sign that all is not well for the economy.
“Seven of the nine leading indicators we monitored in June sent negative or neutral signals, highlighting the continuing weakening of economic conditions and possible recession,” said Beth Ann Bovino, US chief economist at S&P Global Ratings, in a note to DailyMail. .com.
In addition to the United States, the global economy as a whole is also struggling with high inflation and weakening growth, especially after the Russian invasion of Ukraine has skyrocketed energy and genders prices. food.
Europe, heavily dependent on Russian natural gas, appears particularly vulnerable to the recession. Repeated COVID-19 blockades in China have also disrupted world trade and supply chains.
In the United States, soaring inflation and fears of a recession have eroded consumer confidence and sparked public anxiety about the economy, which is sending out frustrating and mixed signals.
As November’s mid-term elections approach, American discontent with the economy has lowered Biden’s approval ratings and could increase the likelihood of Democrats losing control of the House and Senate.