• Terms and Conditions
  • Privacy Policy
  • DMCA
  • Disclaimer
  • Cookie Privacy Policy
  • Contact Us
Sixsense News
Advertisement
  • Home
  • Business
  • Economy
  • Fintech
  • Finance
  • Insurance
  • Market
  • Startups
No Result
View All Result
  • Home
  • Business
  • Economy
  • Fintech
  • Finance
  • Insurance
  • Market
  • Startups
No Result
View All Result
Sixsense News
No Result
View All Result
Home Economy

‘The economy is braking hard,’ says billionaire Barry Sternlicht

Sixsense News by Sixsense News
October 4, 2022
in Economy
0

Related articles

Jobless claims edge up to 198,000, higher than expected

March 30, 2023

Signs of Hope | AIER

March 30, 2023


The U.S. economy is teetering on the brink of a serious downturn if the Federal Reserve doesn’t pump the brakes on its rate hikes, billionaire CEO Barry Sternlicht said.

The central bank has already raised interest rates four times this year and is widely expected to hike them by 75 basis points next week in an effort to tame inflation. Earlier this week, consumer prices rose 0.1% instead of the 0.1% decline economists surveyed by Dow Jones were expecting.

However, Sternlicht believes the Fed was late to the game and is now being too aggressive.

“The economy is braking hard,” the chairman and CEO of Starwood Capital Group told CNBC’s “Squawk Box” on Thursday.

“If the Fed keeps this up they are going to have a serious recession and people will lose their jobs,” he added.

Consumer confidence is terrible and CEO confidence is “miserable,” Sternlicht said. Supply chain issues are being resolved, and inventories are now backing up in warehouses, which will lead to huge discounting, he said.

Stock picks and investing trends from CNBC Pro:

“The CPI, the data they are looking at is old data. All they have to do is call Doug McMillon at Walmart, call any of the real estate fellas and ask what is happening to our apartment rents,” he said, pointing out that the rate of rent growth is now slowing.

The continuation of rate hikes will also cause a “major crash” in the housing market, Sternlicht predicted. The once-hot real estate market is 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.

While the Fed’s target is 2%, inflation should run at 3% to 4%, Sternlicht said.

“Inflation that is driven by wage growth is fabulous. We should want wages to go up,” he said.

Interest rates are surging — here's how to protect your money

“You can pay higher rents, you can buy your equipment, you can go to the restaurant if you have high wage growth.”

As for when the “serious recession” will hit, Sternlicht believes it is imminent.

“I think [in the] fourth quarter. I think right now,” he said. “You are going to see cracks everywhere.”

Correction: Doug McMillon is CEO of Walmart. An earlier version misspelled his name.



Source link

Tags: BarrybillionaireBrakingeconomyHardSternlicht

Related Posts

Jobless claims edge up to 198,000, higher than expected

by Sixsense News
March 30, 2023
0

Initial filings for unemployment insurance ticked higher last week but remained generally low in a tight labor market.Jobless claims for...

Signs of Hope | AIER

by Donald J. Boudreaux
March 30, 2023
0

The past three years did quite a number on my once-high optimism about the future. The eagerness and ease with...

Canada’s fiscal spending moves out of step with overheating economy By Reuters

by Reuters
March 30, 2023
0

© Reuters. FILE PHOTO: People shop at the Eaton Centre in Toronto, Ontario, Canada November 22, 2022. REUTERS/Carlos Osorio (This...

Swiss authorities reveal cost of Credit Suisse’s liquidity lifeline By Reuters

by Reuters
March 30, 2023
0

© Reuters. FILE PHOTO: The logo of Swiss bank Credit Suisse is seen in front of a branch office in...

Links 3/30/2023 | naked capitalism

by Lambert Strether
March 30, 2023
0

Scientists create Liquid Trees; a tank full of water and micro-algae that could be an alternative to trees in urban...

Load More

Analysts say next week’s BoI rate hike won’t be the last

March 30, 2023

Nifty sheds 431 pts in March F&O series, Nifty Bank slips 91 pts — here’s what to expect in April | Nifty 50, Nifty Bank in March FO series

March 30, 2023

PicsArt Photo & Video Editing App Latest Version

March 30, 2023

Diffusion to merge with EIP Pharma in all-stock deal

March 30, 2023

ChatGPT and Other Types of Generative AI Will Help Automate Your Financial Crimes Case Management Pr

March 30, 2023

S.Korea, Taiwan chipmakers express concern about US subsidy criteria By Reuters

March 30, 2023
Sixsense News

© 2022 Sixsense News All Rights Reserved.

Navigate Site

  • Terms and Conditions
  • Privacy Policy
  • DMCA
  • Disclaimer
  • Cookie Privacy Policy
  • Contact Us

Follow Us

No Result
View All Result
  • #3158 (no title)
  • Business
  • Economy
  • Finance
  • Fintech
  • Insurance
  • Market
  • Startups

© 2022 Sixsense News All Rights Reserved.