Forbes Media Editor-in-Chief Steve Forbes said on Friday the U.S. economy is not in good shape, thanks to the rapid inflation and soaring gas prices across the nation.
“What the American economy is showing is that it’s ready to roar if you remove these uncertainties and barriers,” Forbes told host Gillian Turner on Fox News’ “The Faulkner Focus.”
He also said the Biden administration has been “scapegoating” companies as prices rise, warning about the Federal Reserve’s plan for a “soft landing” in the form of a recession.
This comes after President Joe Biden on Friday touted the May jobs report as evidence of the economy’s underlying strength, as he attempts to convince Americans that his administration engineered a successful economic recovery in the face of a disappointment by the public.
“I know that in the face of today’s good news, a lot of Americans remain anxious. And I understand the feeling,” he said from the White House.
“There’s no denying that high prices, particularly around gasoline and food, are a real problem for people. But there’s every reason for the American people to feel confident we will meet these challenges. Because of the enormous progress we’ve made on the economy, the Americans can tackle inflation from a position of strength,” the president added.
Financial experts have previously forecasted that the U.S. could be looking at a recession during the fourth quarter of 2023 and into 2024.
“We no longer see the Fed achieving a soft landing,” Deutsche Bank economists told Fox News. “Instead, we anticipate that a more aggressive tightening of monetary policy will push the economy into a recession.”
However, Fed Chair Jerome Powell pushed back against concerns that further tightening the central bank will trigger a recession.
“The probability of a recession in the next year is not particularly elevated. All signs [are that] this is a strong economy and one that will be able to flourish in the face of less accommodative monetary policy,” said Powell in a statement.
Americans have been suffering from financial strain recently, but thankfully, jobs are booming across the country and the Fed is doing something to ease our troubles, unlike Biden.
