Barry Sternlicht, a billionaire CEO of the Federal Reserve said that the U.S. is on the verge of serious economic collapse if it doesn’t stop raising interest rates.
In an attempt to control inflation, the central bank has raised interest rates at least four times already this year. It is expected that they will increase them by 75 basis point next week. This was earlier in the week. consumer prices rose 0.1% instead of the 0.1% declineDow Jones surveyed economists and found that they were anticipating.
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Sternlicht however believes that the Fed has been too aggressive in the past and it is late to the party.
Starwood Capital Group’s CEO and chairman, Starwood Capital Group said that the economy was “braking hard”. He spoke to CNBC’s “The Economy is Breathing Hard” segment.Squawk Box“, Thursday.
He stated, “If the Fed continues to do this they are going have a serious depression and people will lose there jobs.”
Sternlicht noted that CEO confidence and consumer confidence are both low. Sternlicht said that supply chain problems are being addressed and inventories are now back up in warehouses. This will result in huge discounts.
They are using old data when they look at the CPI. To find out about our apartment rents, they can simply call Doug McMillon, Walmart’s real-estate guy, and ask him. rent growth is now slowing.
Sternlicht forecasted that there will be a major crash in the housing market if rate hikes continue. It is now a hot real estate market. swiftly slowing down, with mortgage rates for a 30-year fixed loan over 6% — up from 3.29% at the start of the year, according to Mortgage News Daily.
Sternlicht stated that while the Fed targets 2% inflation, Sternlicht believes it should be between 3% and 4%.
It is amazing to see inflation driven by wage growth. “We should desire wages to increase,” he stated.
You can get higher rents. If your wage growth is high, you may be able buy more equipment.
Sternlicht is confident that the recession will be severe.
“I think [in the] fourth quarter. He said, “I think right now.” You will see cracks all around.
Correction: Doug McMillon was the CEO of Walmart. In an earlier version, his name was misspelled.