Steve Forbes, the editor-in-chief of Forbes magazine, has sounded a warning for the United States, predicting economic turbulence in the coming year. He is concerned that some Americans will face a potentially “choppy” ride ahead.
Forbes, who was a former Republican presidential candidate in 1996 and 2000, expressed his concerns during an interview with Newsmax. He criticized the Federal Reserve, stating that it is operating under the false belief that “prosperity causes inflation.” He also pointed to the uncertainty in the marketplace and warned that the economy faces serious headwinds on investment.
Speaking about the year 2024, Forbes predicted turbulence for consumers. He highlighted the impact of higher prices and stated that consumers will not forget that prices are higher today than when Joe Biden took office.
Forbes also accused the Fed of attempting to support President Joe Biden for the upcoming year ahead of the presidential election with its monetary tightening regime. He believes that the central bank’s efforts to help Biden will ultimately be ineffective.
The recent data from the Bureau of Labor Statistics showed some signs of abating inflation, with the consumer price index increasing 0.1 percent in November 2023. However, over the past 12 months, the index has still increased by 3.1 percent.
While some major banks have forecasted constrained global growth in 2024 due to elevated interest rates, pricier oil, and a weakened China, they also believe that the risk of a recession is low. However, businesses are feeling more pessimistic, with companies characterizing demand as somewhat weak. They are continuing to cut inventories as they adjust to sluggish demand for goods.
Walmart’s chief financial officer John David Rainey expressed caution at a recent consumer and retail conference, stating that the cautious sentiment is a departure from what was seen earlier in the year.
The Conference Board reported an increase in consumer confidence in December, reflecting more positive ratings of current business conditions and job availability. The head economist with the Conference Board, Dana Peterson, stated that while the renewed optimism was seen across all ages and household income levels, the gains were largest among householders aged 35-54 and households with income levels of $125,000 and above.
Despite the increase in confidence, two-thirds of Americans still believe that an economic downturn is possible in 2024. This sentiment is fueled by previous warnings about Federal Reserve rate hikes potentially leading to increased unemployment and reduced demand across the U.S.
Forbes’s warning has sparked concerns about the future economic outlook, as the country braces for potential challenges in the coming year. The impact of these predictions remains to be seen, but they have certainly added to the existing debate surrounding the nation’s economic trajectory.
