Biden using dated solutions to solve supply problem, market expert says

“They’re just not focused on the supply driven problems in the economy, the lack of labor or the lack of investment in commodities and energy. Everything they’ve done has been the opposite of that,” Auth said on Fox business roundtable “Mornings with Maria.”

“I think Biden has figured out, though, that he’s got a supply problem. I think [Powell] understands that much more than the president does,” he continued. “And he’s got the ’70s playbook in front of him now.”

In a televised interview Tuesday, Powell discussed the state of the economy just hours before President Joe Biden’s State of the Union address where the recent jobs report and various spending bills were touted by the president.

While Americans won’t see a “harsh financial crisis” like 2007-08, Auth noted tech stocks are “doing terrible” and there’s more “negative surprises” to come in earnings season.

Wednesday morning, Zoom announced it will lay off 15% of its workforce, preparing for what the company called uncertainty of the global economy. Buy-and-sell platform eBay is reportedly cutting 4% of its workforce for similar reasons.

As the labor sector starts getting squeezed, Auth doesn’t believe investors or lawmakers will see a policy pivot from the Fed

“I think we’re in an environment here of rates higher for longer,” the market expert said. “I’m not buying the pivot or anything like that. So I think growth stocks are going to struggle, but I think you can do okay with dividend-paying stocks.”

Powell – along with other Fed officials – have indicated they are willing to go higher if the data suggests the economy is still too high, a message he reiterated again on Tuesday.


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