Ken Langone warns of 'serious recession' after Fed 'disappointment' on inflation
Federal Reserve hikes rates by 75 basis points to curb inflation once deemed 'transitory'
Home Depot co-founder Ken Langone argues problems 'will not be solved' until the country addresses challenges impacting the economy.
During an interview on "Mornings with Maria" Friday, Home Depot co-founder Ken Langone issued a gloomy prediction for the U.S. economy, Friday, arguing the country will face a "serious recession" as record inflation continues.
KEN LANGONE: We've got all kinds of dislocations in the economy. Shortages. I think it plays out one way, Maria. I think it plays out in a serious recession, probably as bad as we had an '81 or '82. And I think those of us that are investors, we want to structure ourselves in accordance. And so we want to watch balance sheet. You want to make sure you've got first-class management. Hopefully you got a nice dividend record, and you've got liquidity.
But right now everything I see indicates to me, as I said more than a year ago, it was not transitory. My surprise and my disappointment is the Fed. They [Fed] certainly had more information than I did, and they should have been more sensitive to it. But the chairman of the Fed was saying himself, "Oh, no, this is transitory. It'll go away." It hasn't gone away. It's gotten worse and frankly, I think it can get even worse than it is right now.
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Home Depot co-founder Ken Langone discusses the impact of inflation on the housing market, the Fed's 75 bps rate hike, recession risk in the U.S. and Biden's climate agenda.