The US economy is 'dead in the water' and inflation is squeezing consumers, Steve Forbes says

Steve Forbes, chairman and editor-in-chief of Forbes.(Photo by J. Countess/Getty Images)

  • The US economy is “dead in the water” despite GDP growing in the third quarter, Steve Forbes said.

  • He noted that “hard times are coming” given inflation is still high and a global energy crisis.

  • “In terms of the 2.6% […] the economy is dead in the water,” Forbes told Fox Business.

The US economy is “dead in the water” and inflation is still biting on consumers’ wallets, according to Steve Forbes.

In an interview with Fox Business, the chairman and editor-in-chief of Forbes crushed President Joe Biden’s optimism on the US economy. This despite the country’s gross domestic product beating expectations in the third-quarter.

According to latest figures, the U.S. 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 rosy view of the US economy is false, and makes him out to be a comedian but “the audience isn’t laughing.”

“In terms of the 2.6%, if you look at final sales which is what economists do, the economy is dead in the water,” he told Fox Business on Friday.

Forbes said the economy was growing at over 4% when Biden took office. “Look at it today,” he said, adding that “hard times are coming.”

He also addressed 40-year high inflation running through the US economy, saying it grew at only 1.5% when Biden took office.

The latest numbers from September showed inflation grew 8.2%, exceeding the projected 8.1% increase economists were expecting, with home prices fuelling the rise.

Fighting US inflation is proving a difficult battle for the Federal Reserve, which has been hiking 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 lift the benchmark rate by another 75 basis points.

With prices rising at such a fast pace, Biden suggested US consumers pivot away from buying branded goods like “Kellogg’s Raisin Bran.”

“That’s not the problem,” Forbes said. “The problem is the dollar has been going up and down like a yo-yo, the Federal Reserve has made a hash of things and the Biden administration has been throwing sand in the gears of this economy,” he said.

He added that the Biden administration is deepening a global energy crisis given his policies are preventing the US from producing more oil.

“We’re going to have oil and gas shortages next year. We think we’re going to have a tough winter this year, wait until 2023,” Forbes said, adding that the US could be producing more than 2 million barrels of oil a day.

Read the original article on Business Insider

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