Relying on the Federal Reserve to help with inflation is "basically like taking a Keynesian knife to what is a supply side gunfight," former White House trade adviser Peter Navarro told Newsmax on Monday.
"The Fed is not the solution," Navarro told "Eric Bolling the Balance." "There are very complex things going on."
"The next thing we're going to see … classic recession problems, is that as gas prices and food prices continue to rise and erode the purchasing power of the consumer, they're gonna be spending less, and that's going to be a recessionary force," Navarro continued.
At the same time, people will be seeing monthly drops in their portfolios, creating a negative wealth effect, Navarro noted.
"They feel poor, so they spend less, so these things are set in motion now at just the pure consumer level to bring us down. The fed can't do anything about that, in fact, when they raise interest rates that contributes to the problem, because everything is more expensive," Navarro said.
About NEWSMAX TV:
NEWSMAX is the fastest-growing cable news channel in America!
© 2022 Newsmax. All rights reserved.