Kevin Hassett's recession predictions

People that think that the economy is still growing, albeit at a sluggish rate, aren't paying attention to the economy. They aren't paying attention to Kevin Hassett, either, which is a huge mistake. Hassett was on Larry Kudlow's radio program Saturday morning to talk about the recession, Manchin's Walk the Plank Act and what to expect for Q3 and Q4 of 2022.

Saying that Hassett's perspective was pessimistic is understatement. Hassett and Kudlow both emphasized that the recession that we're already in wasn't caused by the Fed. Hassett highlighted the fact that the Fed tightening didn't start until Q2 of 2022. Hassett and Kudlow both stated that business investment would drop off in Q3 and Q4 thanks to the Fed tightening.

Further, home sales will likely drop because of higher mortgage interest rates, which will be triggered by the Fed's tightening. New and existing home sales are already dropping, in fact.

Here's how you can listen to the entire interview:

According to Hassett, the Manchin bill will have a severely negative impact on the economy, thanks in large part to the tax hike on business investment. This makes investing that much less appealing, especially when coupled with the Biden administration's regulatory excesses.

It's best to think of things this way: today, we're dipping our toe in the water at the shallow end of the pool. Three months from now, the current will have gotten stronger, the water will be deeper and colder. If that happens, we won't get out of this recession until our new president is inaugurated on Jan. 20, 2025.

In one of their 2012 debates, President Obama said this:

These days, the 1970s called Biden, saying that they wouldn't wish their inflation on anyone. Unfortunately, Biden isn't listening. Now we're stuck with 1970s inflation.