- According to Steve Forbes the Federal Reserve is ruining the economy with its aggressive rate hikes.
- “They are pursuing policies that will make the economy worse,” the Forbes CEO told Fox Business.
- Forbes also slated Treasury Secretary Janet Yellen to flip-flop on guaranteeing all American bank deposits.
According to Steve Forbes, the Federal Reserve’s stubborn rate hikes are ruining the economy.
“The Federal Reserve continues its policy, trying to destroy the economy. They are pursuing policies that will make the economy worse,” the editor-in-chief of Forbes magazine told Fox Business on Thursday.
Forbes said, “You not only have banks that are unstable. I don’t think there will be many more, but countries are in trouble. You have companies in trouble.”
The central bank on Wednesday hiked its benchmark rate to a range of 4.75%-5% as it presses ahead with its fight against inflation.
The decision came after weeks of uncertainty over how the Fed might respond to the recent banking turmoil, which saw the implication of Silicon Valley Bank (SVB) and Signature Bank in the US, and the government-backed takeover of Swiss banking giant Credit Suisse. UBS in Switzerland.
Forbes not only slated the Fed, however. He slammed Treasury Secretary Janet Yellen as she flip-flopped on blanket coverage for all US bank deposits.
“They don’t know what they’re doing. On the one hand, they don’t want to be accused of a bailout. On the other, they want to reassure the markets that they’re there to support the banking system. That confusion is going to make things worse.” makes,” Forbes said.
Yellen has relented and changed her stance on how to keep U.S. deposits safe as the banking shock ravages small and medium-sized lenders. On Thursday, she told lawmakers that regulators would “stand ready to take additional action if necessary” to protect the banking system. His comments came a day after he said he was not considering a comprehensive insurance for all bank deposits.
Source: markets.businessinsider.com
