Biden admin, Fed policies leading to 'troubled' US economy: Forbes

Steve Forbes, chairman and CEO of Forbes Media, blasted President Biden and the Federal Reserve for their economic policies, arguing that a recession is on the horizon as a result. 

Forbes argued on "Varney & Co." on Monday that those polices are leading to a "troubled" U.S. economy. 

When host Stuart Varney asked Forbes if he expects a recession in the U.S. this year or next, he responded, "yes, now whether it is an official recession, where you have two quarters in a row [of negative economic growth], who knows? But the economy is going to decline."

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Forbes made the argument reacting to a Wall Street Journal survey of economists who see a growing risk of recession amid the expected aggressive response from the Federal Reserve to try and curb soaring inflation.

The economist surveyed this month on average put the probability of the economy being in recession sometime in the next year at 28%, up from 18% in January and just 13% compared to the same time last year.  

On Monday, Forbes outlined the "two principal reasons" he believes the U.S. will face a declining economy in the near future. 

"One is the Biden administration is still continuing bad policies on regulation and the like and the Federal Reserve does not know how to fight inflation. They are rapidly raising interest rates, that’s going to hit the mortgage market and other things," he argued. 

"So when you have incompetence plus incompetence, you get a troubled economy unnecessarily."

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The Federal Reserve signaled last week that it could raise interest rates by 50-basis points in coming meetings and start to reduce its massive balance sheet at a pace of $95 billion a month as it seeks to cool the hottest inflation in four decades.

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FOX Business’ Megan Henney contributed to this report.