It’s no secret that Biden’s economic “policies” have put the U.S. on a bad course. Numerous polls reveal many Americans feel like we are on the wrong track. We’ve seen how Biden’s “big government” approach has led to high prices and rising inflation.
Shockingly, his administration doesn’t seem to be trying to correct course. And it’s drawing the anger of previous officials.
We’ve seen former Obama officials criticize Biden in the past. It’s always a surprise to see people who worked for Biden’s old boss, come out to slam his failed policies. These aren’t conservatives, but men who worked for one of the most liberal presidents in history. Now, yet another former economic advisor to Obama is warning the Fed to change course, or else.
From Fox News:
Former Obama economic adviser Larry Summers offered a grim outlook for the U.S. economy this week, predicting stagflation and a “major” recession if the Federal Reserve continues on its current policy trajectory…
Summers argued, citing research he conducted with a colleague at Harvard University, that overheating conditions of high inflation and low unemployment, both currently facing the U.S., are usually followed by a recession.
Larry Summers, an economic adviser from the Obama administration, warned that if Biden’s Federal Reserve doesn’t change tactics, we could be looking at a painful recession. He warned that the “overheated” economy—caused by Biden’s inflation and spending—could result in “stagflation” and poorer economic conditions. Part of the problem is that inflation is not being matched by rising wages.
The cost of doing business continues to rise, making it harder for companies to survive. That could result in massive layoffs, as companies struggle to turn a profit. Summers points to key factors that the Fed appears to be ignoring, including high energy prices, the war in Ukraine (and Biden’s sanctions), and supply chain problems stemming from China.
Some of these things are out of America’s hands. But plenty can be solved by Biden and the Fed. Energy prices can come down, if Biden reversed his anti-energy policies. If the Fed bothered to take inflation seriously, they’d take steps to counter it, so that the dollar doesn’t continue to lose its value.
But it seems the Fed is as blind as Biden is. They will continue to support his failing agenda, until the bottom falls out. How badly will this hurt Americans? And does Biden even care?