Economy will ‘turn for the worse,' warns former EY Global Chairman and CEO

EY Global Chairman and CEO sounds alarm that inflation is not going to slow down

During an interview on "Mornings with Maria," Wednesday, former EY Global Chairman and CEO Mark Weinberger warned that inflation will not go down in the near future, causing the economy to "turn for the worse."

MARK WEINBERGER: The experience to date has been pretty good. We were talking a month or so ago, the resilience in earnings and margins has been good, obviously, across the board. Tech is another story. It's been harder hit. Private markets are yet to be hit. We're going to feel that six months from now they usually lag by six months. So today I think we're feeling okay even though with all this anxiety. But if you look in the future, we've heard all this discussion, about weather. Hurricanes, tornadoes. That's because people are seeing on the horizon, and it's going to turn for the worse. 

American flag and the U.S. stock market

United States economic downturn with stock exchange market showing stock chart down and in red negative territory. Business and financial money market crisis concept in the U.S. (iStock / iStock)

Now, what that means, far as recession or stagflation we can talk about it, we don't know. But it is going to turn for the worse because inflation is not going to go down. It may be peaking, but it's no indication it's going to go down. Over time, that will eat away at consumption. Consumption drives the U.S. economy and much of the global economy. That's going to be harder to maintain. Post all the money they got from the bailouts and the government that's going to go away, borrowing goes up. That's what we're looking at. Two, three, six months from now. We're looking at a different type of environment.