Former Toys ‘R’ Us chairman and CEO Gerald Storch argued on "Varney & Co." Friday that consumer spending is going to hit a "screeching halt" as Fed policies drive up the cost of money without correcting underlying government spending issues driving inflation.
GERALD STORCH: They'll keep spending as long as they have money, but the money is going to run out. And Fed policy is only addressing monetary policy. Meanwhile, we're not addressing any of the fundamental structural issues that are behind the problems we have with inflation, the economy, overall. Government spending, labor availability, the supply chain problems and energy policy. So we have these fundamental issues, and all we're doing is raising the cost of money and thinking that's going to solve it absolutely won't. And so the consumer will eventually see problems with credit availability, problems with defaults on credit cards. And you're going to see all of this come to kind of a screeching halt here.
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