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Doomsday CEO who correctly predicted the retail apocalypse issues another stark warning about the U.S. economy: 'Ready to crack'
The fault lines of the US economy are 'about ready to crack' - that is the stark warning from one of the America's top CEOs Bob Nardelli.
The former boss of Home Depot and Chrysler says the Biden administration's policy missteps could create significant challenges for the next president.
'What I've seen over the past three-and-a-half years is that a series of debacles and missteps have created a tremendous pressure on the fault lines of our economy, and they're about ready to crack,' Nardelli told FOX Business.
'Whoever gets the next stint in the White House is going to be hit with a wrecking ball in trying to correct the missteps and the overspending of this current administration.
'So we're in for a rough time, I would say.'
Former Home Depot CEO said US economy is in for a 'rough time'
In April last year, Nardelli warned about trouble for retailers, saying: 'We're going to see a lot of bankruptcies.'
He was proved correct. More than 5,500 shops shut in 2023 and in just the first four months of this year the retail bloodbath has continued with closures hitting 2,600.
His accuracy on that makes his latest warning even more worrying.
Nardelli was asked on FOX what he thought about Biden's green agenda since taking up office in January 2021.
Critics have described the policies as a 'war on fossil fuels,' and have pushed up energy prices. Americans are also grappling with increased expenses for groceries and rent.
'The inflation pipeline has a long tail, and I've seen it across many areas, both on raw materials and labor,' Nardelli said
He noted that apartment rents have surged, citing an example from downtown Atlanta where the cost of a two-bedroom apartment has risen to about $3,500 a month - double what it was three years ago.
'It's really depressing to see the impact on family net worth and income levels,' Nardelli continued.
'Even though we've seen 40 percent wage increases in some cases, it's being totally absorbed by inflation and the cost of living.'
A recent Wall Street Journal analysis found that American households' net worth has stagnated during Biden's tenure.
Nardelli's warning is the latest about the US economy in recent weeks.
Bob Nardelli - former boss of Home Depot - said the fault lines of the US economy are 'about ready to crack'
Last week, Jamie Dimon - head of the world's biggest bank JPMorgan Chase - said that he cannot rule out a 'hard landing' for the US economy.
A 'hard landing' is when there is a marked economic slowdown following a period of rapid growth.
When asked about the worrying prospect during a CNBC interview this morning, Dimon said: 'Could we actually see one? Of course, how could anyone who reads history say there's no chance?'
America's most influential banker also said that the worst outcome for the US economy would be 'stagflation' - which is when inflation continues to go up, but unemployment is high and growth slows.
Economists consider stagflation, last seen in the US in the 1970s, to be worse than a recession. It would send stocks down, hitting 401(K)s and other retirement savings.
The billionaire banker said, in another interview last month, that he worried the US economy 'looks more like the '70s than we've seen before.'
JPMorgan Chase CEO Jamie Dimon has said that he cannot rule out a 'hard landing' for the US
Citigroup's top economist Andrew Hollenhorst has warned about how a deteriorating labor market is showing cracks in the US economy
Dimon's warning comes after an analyst who works for him at JPMorgan warned the stock market could soon become volatile - despite reaching record highs this year.
Meanwhile, Citigroup's top US economist Andrew Hollenhorst also warned last week about cracks in the economy - saying problems could 'snowball'
The chief economist at the bank, which is the fourth largest in the US, told CNBC in an interview this week how it could mean the economy 'snowballs' into a 'hard landing.'
While many argue that labor market data in recent months does not necessarily point to the economy turning sour, Hollenhorst said that it might be less positive than people realize.