Steve Forbes: ‘The Only Way Fed Knows How to Fight Inflation Is by Making People Poorer’

Steve Forbes appeared on Fox Business’s “Varney and Company” with host Stuart Varney to discuss President Joe Bidens recent claims about the state of the American economy and the real impact that inflation is having on American households.

Forbes stated that “Well, we’re going to have a hard winter, and the Europeans are going of to have it even worse because of what is happening with the gas from Russia. But the president overlooked the fact that even though he says it only inched up, commentators, observers thought it was going to go down slightly because of the big decline in gasoline. So it was a disappointing report. So this happy talk is going to hit him back hard, and he’s doing all he can to make it impossible to recover from the inflation that comes from disrupting supply chains. They already pulled back leases, five major leases on federal lands that had already been done, now they’re walking those back. And so it goes on and on. And the Federal Reserve is going to push us in — if it hasn’t done already — into a recession. And that’s — the only way they know how to get down prices, is by depressing the economy. Not the right way to do it, and we’re all going to pay the price for it.”

Varney disagrees with the Vanguard investment firm who believes that there’s a “65 percent chance of a recession next year.”

He believes that “there’s going to be a recession much sooner than that and much steeper than people are thinking about.”

Forbes agreed. Stating, “Well, that’s right. Because unfortunately, instead of focusing on stabilizing the dollar, the Federal Reserve is drastically raising interest rates, far more than any other country in the world. Other countries will be printing a lot of money to help businesses and consumers get through hard winter. So that’s going to be a pressure on upward prices. So, we’re in a recession, I don’t care what they define it as. Maybe we’ll get a little blip upward in the third quarter, but we are in a downturn, and the Fed wants a downturn because the only way it knows how to fight inflation is by making people poorer.”