FedEx boss tells the US to brace for stagflation because there aren’t enough workers to meet juiced-up demand

FedEx’s founder and executive chairman Fred Smith has warned that labor shortages in the US are likely to drive inflation even higher.

FedEx founder Fred Smith warned that labor shortages could lead to stagflation in the US.
He told Fox Business that a lack of workers fueled the pandemic-era supply chain crisis.
“You simply do not have the workers to meet the demand that’s been juiced by the printing of money,” Smith said.

The US is facing a shortage of workers alongside high easy money-driven demand, and that’s driving up the risk of stagflation for the economy, FedEx’s founder has warned.

Fred Smith said in a weekend interview that low labor participation rates mean the US will not have enough workers to meet demand, which he believes is soaring as a result of government support for the economy.

“You simply do not have the workers to meet the demand that’s been juiced by the printing of money,” the delivery giant’s executive chairman told Fox Business’s ‘Kudlow’ on Saturday.

“It’s like sitting in your car and putting your foot on the accelerator and the brake at the same time,” Smith said.

The combination of “tremendous” demand and lack of labor means the US is in a sort of stagflation period, he argued, after two consecutive quarters of negative economic growth.

Stagflation — a mixture of high inflation and a stagnant economy — is a nightmare for investors: It leaves them guessing which way the Federal Reserve will jump on dampening or stimulating growth.

Economist see the US labor market as tight, with worker demand considerably outpacing supply. Job openings in the US unexpectedly rose in July, but labor force participation measures — which track how may Americans are working or actively seeking work — still lag their pre-pandemic levels.

Smith is worried that Biden’s …read more

Source:: Businessinsider

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