The failings of the US economy are “about to crack” – that’s the stark warning from one of America’s top CEOs, Bob Nardelli.
The former Home Depot and Chrysler boss says the Biden administration’s policy mistakes could create significant challenges for the next president.
“What I have seen over the last three and a half years is that a series of debacles and missteps have put tremendous pressure on the failings of our economy, and it is about to crack,” Nardelli said. fox business.
‘Whoever occupies the next term in the White House will be hit with a wrecking ball as they try to correct the mistakes and excessive spending of this current administration.
“So, I would say, we are going through a difficult time.”
The former CEO of Home Depot said the US economy is going through a ‘difficult time’
In April of last year, Nardelli warned of trouble for retailers: “We’re going to see a lot of bankruptcies.”
He was proven right. More than 5,500 stores closed in 2023 and in the first four months of this year alone the retail bloodbath continued with closures reaching 2,600.
His precision in this regard makes his latest warning even more worrying.
Nardelli was asked on FOX what he thought about Biden’s green agenda since he took office in January 2021.
Critics have described the policies as a “war on fossil fuels” and have driven up energy prices. Americans are also dealing with higher food and rent expenses.
“The inflation process has a long tail, and I have seen it in many areas, both in raw materials and labor,” Nardelli said.
He noted that apartment rents have increased, citing an example from downtown Atlanta, where the cost of a two-bedroom apartment has risen to about $3,500 a month, double what it was three years ago.
“It’s really depressing to see the impact on the family’s net worth and income levels,” Nardelli continued.
“Although we have seen salary increases of 40 percent in some cases, they are being completely absorbed by inflation and the cost of living.”
A recent Wall Street Journal analysis found that the net worth of American households has stagnated during Biden’s term.
Nardelli’s warning is the latest for the U.S. economy in recent weeks.
Bob Nardelli, the former head of Home Depot, said the flaws in the U.S. economy are “about to crack.”
Last week, Jamie Dimon, head of the world’s largest bank, JPMorgan Chase, said he cannot rule out a “hard landing” for the U.S. economy.
A “hard landing” occurs when a marked economic slowdown occurs after a period of rapid growth.
When asked about the worrying prospect during a CNBC In an interview this morning, Dimon said: ‘Could we actually see one? Of course, how could someone who reads history say that there is no chance?
America’s most influential banker also said the worst outcome for the U.S. economy would be “stagflation,” which is when inflation continues to rise but unemployment is high and growth slows.
Stagflation, last seen in the United States in the 1970s, is considered worse than a recession by economists. It would send stocks tumbling, hitting 401(K) plans and other retirement savings.
The billionaire banker said, in another interview last month, that he worried that the U.S. economy “is looking more like the 1970s than we’ve seen before.”
JPMorgan Chase CEO Jamie Dimon has said he cannot rule out a “hard landing” for the US.
Citigroup chief economist Andrew Hollenhorst has warned about how the deterioration of the labor market is showing cracks in the US economy.
Dimon’s warning comes after an analyst who works for him at JPMorgan warned that the stock market could soon become volatile, despite hitting record highs this year.
Meanwhile, Citigroup’s chief U.S. economist, Andrew Hollenhorst, also warned last week of cracks in the economy, saying the problems could snowball.
The chief economist of the bank, which is the fourth largest in the US, said CNBC in an interview this week how this could mean the economy “snowballs” into a “hard landing.”
While many argue that labor market data from recent months does not necessarily indicate that the economy is getting worse, Hollenhorst said they might be less positive than people think.