Fed rate hike will have 'devastating' impact on consumers, former Home Depot CEO warns

[mystery-ak]

June 15, 2022 3:44pm EDT
Fed rate hike will have 'devastating' impact on consumers, former Home Depot CEO warns
Bob Nardelli urges 'sustainable' habits in wake of the Federal Reserve's 75-basis point hike to tackle inflation

By Madeline Coggins | Fox News

Former Home Depot CEO Bob Nardelli warned on "America Reports" Wednesday that the Federal Reserve hiking interest rates to cool inflation will have a "devastating impact" on consumers.

"I would tell the consumer, make sure that you're building up cash reserves," Nardelli emphasized. "Build up a supply of non-perishables in your home. Make sure that you're prepared for sustainable inflationary periods."

Nardelli's remarks came ahead of the Federal Reserve's announcement Wednesday which stated it raised its benchmark interest rate by 75 basis points for the first time in nearly three decades.

The Fed's decision comes in response to record-high inflation and shrinkflation which has crippled the nation's economy for months. May's Consumer Price Index (CPI) showed an 8.6% inflation which has steadily increased since President Biden entered office.

"Every time you go to the store, what you're going to see is they're trying to avoid sticker shock," Nardelli shared. "So you're paying $5 or something for a consumable item. The fact is you may have 10, 20, 30% less in that bag or in that can. So that's really the inflationary number that doesn't always get accurately reported in the 8.6%."

Despite the financial strain many Americans feel at the pump and in grocery stores, the White House has remained optimistic about the economic situation and praised inflation as part of the transition to a green energy economy.

Economists and analysts are divided on how long the inflationary period could last and what the immediate after-effects of the Fed's decision Wednesday will be. It is certain Americans are not yet in the clear.

"What really scared me to death is when I heard the president's administration say there's really nothing we can do to affect this period and the situation that we're in today," Nardelli said. "That is just an unconscionable response to the demands and the issues we're facing."

https://www.foxnews.com/media/fed-rate-hike-devastating-impact-consumers-former-home-depot-ceo-warns

   

[libertybele]

June 15, 2022 3:44pm EDT
Fed rate hike will have 'devastating' impact on consumers, former Home Depot CEO warns
Bob Nardelli urges 'sustainable' habits in wake of the Federal Reserve's 75-basis point hike to tackle inflation

By Madeline Coggins | Fox News

Former Home Depot CEO Bob Nardelli warned on "America Reports" Wednesday that the Federal Reserve hiking interest rates to cool inflation will have a "devastating impact" on consumers.

"I would tell the consumer, make sure that you're building up cash reserves," Nardelli emphasized. "Build up a supply of non-perishables in your home. Make sure that you're prepared for sustainable inflationary periods."

Nardelli's remarks came ahead of the Federal Reserve's announcement Wednesday which stated it raised its benchmark interest rate by 75 basis points for the first time in nearly three decades.

The Fed's decision comes in response to record-high inflation and shrinkflation which has crippled the nation's economy for months. May's Consumer Price Index (CPI) showed an 8.6% inflation which has steadily increased since President Biden entered office.

"Every time you go to the store, what you're going to see is they're trying to avoid sticker shock," Nardelli shared. "So you're paying $5 or something for a consumable item. The fact is you may have 10, 20, 30% less in that bag or in that can. So that's really the inflationary number that doesn't always get accurately reported in the 8.6%."

Despite the financial strain many Americans feel at the pump and in grocery stores, the White House has remained optimistic about the economic situation and praised inflation as part of the transition to a green energy economy.

Economists and analysts are divided on how long the inflationary period could last and what the immediate after-effects of the Fed's decision Wednesday will be. It is certain Americans are not yet in the clear.

"What really scared me to death is when I heard the president's administration say there's really nothing we can do to affect this period and the situation that we're in today," Nardelli said. "That is just an unconscionable response to the demands and the issues we're facing."

https://www.foxnews.com/media/fed-rate-hike-devastating-impact-consumers-former-home-depot-ceo-warns

 

Hopefully people have already prepared. I would think it would be quite difficult for those who are already struggling to feed their families to build up a cash reserve and have non-perishables on hand.

[Hoodat]

Fed rate hike will have 'devastating' impact on consumers

No, it's the reckless expansion of the money supply that is devastating consumers.  Interest rates should always be higher than the rate of inflation.

[Smokin Joe]

No, it's the reckless expansion of the money supply that is devastating consumers.  Interest rates should always be higher than the rate of inflation.

Consider how many folks went into debt during COVID anticipating a recovery that would allow them to pay that off. Now the rates are going up (variable APR), and they will get squeezed between servicing debt and high prices.