Steve Forbes warns Newsmax of upcoming economic turbulence in 2024

December 20, 2023 TruthUSA

In a Wednesday interview with Newsmax, Steve Forbes, editor-in-chief of Forbes, expressed concerns about the economic outlook for the coming year.

Forbes cautioned that the Federal Reserve’s belief that prosperity causes inflation poses a potential risk. He drew parallels with the uncertainties of the 1970s, emphasizing the impact of market instability and an underperforming economy.

Speaking on “Rob Schmitt Tonight,” Forbes likened the economic situation to turbulence on an airplane, advising individuals to “fasten their seat belts” for a potentially “choppy” ride. Forbes acknowledged that economic trajectories are rarely linear and echoed economist Peter Schiff’s sentiment. He predicted variations across sectors, with some performing well while others lag.

Highlighting rising prices, Forbes asserted that in 2024 “the consumer is not going to forget prices are higher today than they were when [President] Joe Biden took office.”

Despite a marginal increase in consumer confidence, Forbes underscored the looming economic challenges, particularly regarding investment. Addressing recent regulatory moves, Forbes expressed concern over directives to banks, advising them to curtail lending and increase “capital requirements.” He warned that such measures could contribute to headwinds in the economy, potentially leading to bank failures.

Forbes criticized the Federal Reserve’s attempts to support Biden in the upcoming year, casting doubt on the effectiveness of these efforts.

“The Fed right now is trying to help Joe Biden next year, but I don’t think it’s gonna work,” he said.

Americans also contend with the repercussions of the Federal Reserve’s series of interest rate increases, implemented to combat the most pronounced inflation in four decades, manifesting in considerably elevated borrowing expenses.

However, as inflation shows signs of subsiding, economists assert that the Federal Reserve’s era of rate hikes may be approaching its conclusion, carrying significant implications for personal finances, reported CBS News.

In its most recent announcement, the Federal Reserve declared its decision to maintain the benchmark rate, marking the central bank’s third consecutive hiatus. Financial analysts on Wall Street predict that the Federal Reserve will maintain this stance in early 2024, citing diminishing inflationary pressures and a decelerating job market. After this period, there is speculation among some economists that the Federal Reserve could initiate rate reductions as early as the beginning of 2024.

Although Federal Reserve Chairman Jerome Powell refrains from divulging the bank’s forthcoming actions, emphasizing that it is premature to declare triumph over inflation or engage in discussions about potential rate cuts, he acknowledged earlier this month that consumer prices, excluding the volatile categories of food and energy, increased at a modest 2.5% annual rate over the past six months — a marginally surpassing figure compared to the Federal Reserve’s 2% inflation target.

“They’ve been done [hiking rates] for months — they just don’t want the markets to know it,” Jamie Cox, managing partner for Harris Financial Group, told CBS MoneyWatch.

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