Biden in a ‘lot of trouble’ as economic trends turn ‘frightening,’ warns Charles Payne
FOX Business Network host Charles Payne sounded the alarm that the economic indicators in the United States are becoming “frightening.” Payne said on “Hannity” that he fears $4-per-gallon gasoline could look cheap in the next few months, and “Americans just aren’t prepared” for what is coming.
CHARLES PAYNE: He’s [Biden] in a lot of trouble, but it’s going to get a lot worse. The trends on the economic data are frightening… frightening. We see the smallest banks right now, their delinquency rates are 7.5%, it’s off the rails, but the large banks are turning up. Credit card interest rates just cracked 22% as defaults are going through the roof. All the economic indicators point to extreme pain, and it’s going to be exponential. … It’s gradual, and then it’s going to feel like a rocket ship and Americans just aren’t prepared for it. You know, all of the free, steady money is gone. We’re still dealing with inflation. People are trying to batten down the hatches. Our gasoline inventories are at a five-year low. Obviously, the Strategic Petroleum Reserve is at its lowest levels since 1983. Four dollars may look cheap three months from now, and $4 may look cheap for what looked like the good old days three or four months from now. The trajectory, right no that we’re on, all the indicators point to what we’re feeling right now is just the very tip of the iceberg. It’s going to get a whole lot worse.
The U.S. economy has a better chance than not of tumbling into a recession within the next year as inflation remains uncomfortably high, according to Deutsche Bank strategists.
In an analyst note Wednesday, the strategists warned a recession remains the more likely outcome than a “soft landing” as a result of the Federal Reserve’s aggressive interest rate hike campaign.
“Given that inflation peaked significantly above target, the Fed should err on the side of tightening too much, rather than too little,” they wrote. “A U.S. recession remains more likely than not.”
While a soft landing is still possible to achieve, the Fed needs to “depress demand below potential” to bring inflation down to its 2% target, Deutsche Bank said.
FOX Business’ Megan Henney contributed to this report.
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