Wells Fargo CEO: ‘More Significant Rate Hikes’ Likely
We are on the verge of potentially a major economic mess, and the church needs to be ready. Now is the time for prayer.
From CNBC. Wells Fargo CEO Charles Scharf said he is betting on “more significant rate hikes” as the Federal Reserve tries to rein in high inflation, and that the economy is not as prepared as it should be.
“I wouldn’t bet on a number, but I would bet on more significant rate hikes,” Scharf told CNBC’s Sara Eisen at the Aspen Ideas Festival on Wednesday, adding that he considers 50 and 75 basis point hikes to be “significant themselves.”
“Is it going to be more than that? Maybe, but it would require some change in the data to see something like that,” he said.
Fed Chair Jerome Powell said Wednesday at a European Central Bank forum that he would not allow inflation to take hold of the U.S. economy….
Those comments follow several rate hikes from the Fed in recent months, including a 75 basis point hike in June that was its largest since 1994.
Scharf said that he gives the Fed credit for being “very clear about how they’re going to think about what the right movements are going to be….”
However, Scharf said that while the consumer and small businesses have been strong, the impact of rising rates has not been factored into the broader economy.
“We know rates are going up, it couldn’t be clearer,” he said. “We know that consumers and businesses, while strong today, are going to see deterioration, and we’re going to act surprised when it happens.”
Scharf said “that doesn’t mean the world is coming to an end,” but added that “we should do our best to recognize that and focus on what the solutions are….”
How are you praying for our economy? Share your thoughts and prayers below.
(Excerpt from CNBC. Photo Credit: Canva)
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