Co-founder of Home Depot, Ken Langone described the U.S. economy as “at best, tepid,” Tuesday on CNBC. “I don’t know what the hell people are saying about prosperity in the world. I don’t see it,” he told “Squawk Box” in an interview. “I don’t care what any of these geniuses say, the economy is not strong.”
Langone reiterated that the economies around the world are not strong, stating that central banks don’t have enough ammunition “left in the magazine” to boost growth. “There’s nothing more we can do with interest rates,” he said, assuming the Federal Reserve will raise rates at its December meeting if the economy were to drop even lower.
Another product of prolonged low rates, “retirees are being forced to now eat into their principles because the returns on money they’ve put aside are going down.” Langone also stated the government estimates that Obamacare cost will raise next year. A closely watched type of insurance plan sold on HealthCare.gov is seen to rise an average of 25 percent in the 39 states served by the exchange in 2017. “This does not have a happy ending,” Langone stated.