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Bill Gross.REUTERS/Jim Young
American consumers are on track to run out of cash later this year, Bill Gross has warned.
Consumer spending is a key driver of economic growth. If it drops, a recession might be the result.
Gross said the government’s aggressive spending during the pandemic is still buoying the economy.
American consumers are propping up the economy by spending their pandemic savings, but they’re likely to run out of cash later this year, Bill Gross has warned.
“It’s fiscal policy not just monetary policy — stupid,” the billionaire investor tweeted on Monday. His point was that government spending and tax rates, along with interest rates and money supply, affect economic growth and inflation.
“4 trillion of Covid spending still dripping into economy with consumers still spending their last 500 billion or so,” he continued. “The trick is when to time the end of it. 4th quarter is best guess.”
Why does Gross expect consumer spending to dry up?
Inflation surged to a 40-year…
2023-07-11 13:08:38
Article from finance.yahoo.com
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