Economic growth under Biden has already slowed more than expected. As the Fed raises interest rates, economic hardships will likely get worse, American Enterprise Institute economist Desmond Lachman told the Washington Free Beacon.
“The Fed made a policy mistake in 2021,” Lachman said. “They kept interest rates too low. They kept buying bonds. They kept the money supply growing. The administration and the Federal Reserve got ourselves into an inflation problem.”
The Fed in March hiked interest rates by the most in over 20 years. The United States is heading toward a recession, Lachman said, because of such loose policies.
Lachman is not the only economist to blame Biden’s policies for a looming recession. Many liberal economists, including former Obama advisers Steven Rattner and Lawrence Summers, have argued that Biden’s American Rescue Plan caused 40-year-high inflation numbers.
Summers said in April that a recession under Biden is “the most likely” scenario. An overwhelming majority of Americans agree, saying the United States will go into a recession in the next year, the Free Beacon reported.
The Journal published Biden’s op-ed on the same day that gas prices hit their fourth record high in just this year alone.