Despite the continued optimism on Wall Street, with strong GDP growth and low unemployment rates, Ross believes that the economy has been artificially inflated by the $5 trillion in stimulus funds. He emphasized that rising inflation, increasing consumer prices, and reliance on government-created jobs are key indicators of an approaching downturn.
Ross pointed out that the U.S. economy is gradually decelerating after being propped up by these massive stimulus measures for an extended period. He remarked, "The U.S. may face a mild recession, which shouldn't be unexpected. The economy has been flooded with excessive cash following Covid."
According to Ross, much of the stimulus money was spent too rapidly, causing a demand surge that wasn't matched by supply, ultimately driving inflation. He also highlighted that the significant rise in government jobs has skewed the labor market, hindering a genuine economic recovery.
As stimulus measures fade and interest rates continue to rise sharply, the labor market is also showing signs of cooling. While many economists maintain that the economy remains stable, Ross cautioned that a full recovery has yet to be realized.
