Former Home Depot CEO Bob Nardelli talks about shrinking as Americans continue to feel the effects of economic pressures, Biden’s response to the US economy and the rising national debt. He talked about rations.
A former top American corporate executive warns that the U.S. economy is not on a rapid recovery path, with rising inflation and more mass layoffs looming in the market.
Bob Nardelli, former CEO of Home Depot and Chrysler, said: “The public will not be fooled by this hateful attempt to blame American companies for inflation. It starts with raw materials. It starts with transportation, it starts with energy,” former Home Depot and Chrysler CEO Bob Nardelli said on “Kabuto.” : Coast to Coast” Monday. “A lot of things are driving this up, including rising wages.”
He added: “Right now we’re seeing people being laid off. If you look at the tip, almost 40,000 people are being laid off. There’s a big change in employment as people are being laid off. “You can see it,” he said.
In the past two weeks, companies including Cisco, Snap, Estée Lauder, Amazon, Citigroup and UPS have all announced layoffs as executives tighten amid fluctuating interest rates.
Janet Yellen warns that high prices may continue
of pace of work Layoffs by U.S. employers will accelerate in early 2024, with companies planning to cut 82,307 jobs in January, an increase from the previous month, according to a recent report from business firm Challenger, Gray & Christmas. This was a significant increase of 136% compared to the previous year.
According to a report from Challenger, Gray & Christmas, the number of layoffs in the United States increased by 136% in January compared to the previous month. (Getty Images)
However, compared to the same period a year ago, it has decreased by about 20%. This was the second-highest January layoff total in data dating back to 2009.
“Ford fired employees because of EVs”[s]. GM laid off employees for its cruise program. Stellantis is laying off employees because of UAW pay increases,” Nardelli said. My prediction is that we won’t see a soft landing, but I hope I’m wrong. ”
The Labor Department said Tuesday that the Consumer Price Index, which broadly measures the prices of daily necessities including gasoline, food and rent, rose 0.3% in January from the previous month, more than expected.
The “Morning with Maria” panel discusses the U.S. economy and markets after January’s CPI of 3.1% year-over-year.
It rose 3.1% from the same period a year ago, beating the 2.9% forecast by Refinitiv economists.
Nardelli correctly predicted Tuesday’s CPI numbers would rise, meaning there remains pressure for the Fed to continue its aggressive rate path.
The former CEO pointed out that the public does not truly understand how high interest rates are “crushing” middle- and lower-market businesses.
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Former Home Depot CEO Bob Nardelli discusses the economic outlook and long-term price increases on “Maria Bartiromo’s Wall Street.”
“We’ve seen companies where $2 million in interest has now exploded to $12 million, $13 million, $14 million. And the free cash flow we generate is what we pay that person. ,” Nardelli explained. “We cannot afford to pay hidden interest rates. [in] today. So, as an individual, I couldn’t afford it to balance my budget. ”
“I think this is all about trying to buy votes. This is all about an out-of-control regime,” he continued. “We have a strong bias against spending, against conservative policies and a sustainable future.”
FOX Business’ Megan Henney contributed to this report.
