Joe Biden is in trouble.
This is the bad news Democrats’ feared.
And now Joe Biden may never recover from this setback.
Former Obama economic advisor and Harvard President Larry Summers was one of the few voices on the Left warning that trillions of dollars in socialist spending would shoot inflation through the roof.
Biden and the Democrats ignored Summers and inflation reached 40 year-highs.
Now Summers is forecasting a nasty recession next year.
In an appearance on Andrea Mitchell’s MSNBC show, Summers predicted that the Federal Reserve would have to hike interest rates to the point that America entered a recession if the Fed wanted to choke Joe Biden’s inflation out of the system.
“My guess is that the Fed will, in the end, suffer through a recession if we are going to bring inflation down. Perhaps that was inevitable. Probably that was inevitable given all these stimulus that was provided to the economy in 2021, given that the Fed was late, and very importantly, given all of these supply shocks that the economy suffered. But whereas I had thought that the Fed was very much in the wrong place a year ago, way behind the curve in terms of responding to inflation. I think in very difficult circumstances, they are in the range of having done the right things and pointing towards doing the right things. I think the Chairman was right in the film clip. He showed that no one can know what is going to happen going forward,” Summers stated.
Summers went further and predicted that the recession induced by the Fed thanks to Joe Biden’s inflation would be nasty.
“My guess is that we will have a recession. That it will not be especially mild as a recession, but there is no reason to think that it will be anything like what happened after COVID, or what happened after the financial crisis, or what happened when Paul Volcker had to slay inflation after much longer period of high inflation at the end of the 1970s. Perhaps the unemployment rate will get in the range of 6%,” Summers added.
Biden’s socialist spending is the cause of this inflation-induced recession.
And it will hit just as Biden is ramping up his re-election campaign.
When Presidents run for re-election in the midst of a recession, they lose.
And thanks to Joe Biden’s reckless policies, he is now entering the danger zone for Presidents.