Former Toys R Us chairman and CEO Gerald Storch argued on Varney Co. Friday that consumer spending is going to hit a halt as Fed policies drive up the cost of money without correcting underlying spending issues that drive inflation.
GERALD STORCH: They'll keep spending as long as they have money, but the money is going to run out. The Fed policy is only addressing monetary policy. We're not addressing any of the fundamental structural issues that are behind the problems we have with inflation, the economy, and the economy as a whole. The supply chain problems and energy policy are some of the things that government spends, labor availability, and energy policy. Problems with credit availability and defaults on credit cards will cause the consumer to see problems with credit availability. You're going to see all of this come to a screeching halt here.