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One of America\u2019s leading entrepreneurs has warned that the US economy will \u201cget worse before it gets better\u201d in the wake of constant interest rate rises.<\/p>\n
Kevin O\u2019Leary is one of the businesspeople who features on Shark Tank, the sister show to Dragon\u2019s Den in the UK.<\/p>\n
He made the comments earlier this week in response to comments made by the US Central Bank\u2019s chair Jerome Powell who suggested further rate hikes may be necessary.<\/p>\n
Interest rates have been raised to 5.5 percent by the Federal Reserve to mitigate the impact of inflation on the country\u2019s economy.<\/p>\n
Due to the central bank\u2019s decision, the average rate of a 30-year mortgage is sitting at 7.09 percent which is the highest in 22 years.<\/p>\n<\/div>\n
Speaking to Fox News\u2019s Larry Kudlow, the 69-year-old voiced his concerns about the state of the US economy.<\/p>\n
The Shark Tank star explained: \u201c’This gets worse before it gets better. And what’s it doing to small business? Killing them right now.<\/p>\n
\u201cWhat I anticipate is going to happen here, while we still have full employment which is remarkable, and you don’t put any capital into the small business sector, which is 60 percent of the jobs in America, you’re going to start to see some real chaos come September, October, November.<\/p>\n
\u201cThis is an issue for Congress, Larry. It’s very simple.\u201d<\/p>\n<\/div>\n
As well as this, Mr O\u2019Leary slammed the spending of the Biden Administration and the perceived lack of support for small businesses following the pandemic.<\/p>\n
Notably, he took aim at the Chips and Science Act and the Inflation Reduction Act which are both pieces of legislation touted as part of the \u201cBidenomics\u201d model.<\/p>\n
Mr O\u2019Leary added: \u201c’Not a dime for small businesses. A trillion for the big boys, nothing for the small guys.<\/p>\n
\u201cAnd the small guys, they run America, so it has to be rebalanced somewhere, Larry.\u201d<\/p>\n<\/div>\n
Despite warnings over a pending recession in the US after the Fed\u2019s interest rate hikes, the US economy has proven to be resilient.<\/p>\n
As it stands, unemployment in the country is at one of its lowest levels in 60 years and is at 3.5 percent.<\/p>\n
Furthermore, the Consumer Price Index (CPI) rate of inflation for the 12 months to July 2023 eased to 3.2 percent.<\/p>\n
Even with these signs of improvement, the Fed has promised to continue to raise interest rates until inflation reaches its desired two percent target.<\/p>\n<\/div>\n[ad_2]\n","protected":false},"excerpt":{"rendered":"
[ad_1] One of America\u2019s leading entrepreneurs has warned that the US economy will \u201cget worse before it gets better\u201d in the wake of constant interest rate rises. Kevin O\u2019Leary is one of the businesspeople who features on Shark Tank, the sister show to Dragon\u2019s Den in the UK. He made the comments earlier this week …<\/p>\n","protected":false},"author":1,"featured_media":5741,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"_links":{"self":[{"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/posts\/5740"}],"collection":[{"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/comments?post=5740"}],"version-history":[{"count":0,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/posts\/5740\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/media\/5741"}],"wp:attachment":[{"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/media?parent=5740"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/categories?post=5740"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/tags?post=5740"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}