Business leaders warn that inflation, already showing up in food prices, could have a "trickle-down effect” and want the Federal Reserve to “back off” on its easing plan, says journalist and author Lori Ann LaRocco. It’s also too early to assume that the bulls are running on Wall Street again, she told Newsmax.TV.
President Barack Obama also needs to turn his pro-business overtures of late into concrete policy and action if he wants to see more support — and hiring — out of businesses, says LaRocco, author of “Thriving in the New Economy.”
Obama has been calling for more center-leaning policies, including freezing federal spending and renewing free-trade policies, says LaRocco, a senior talent producer at CNBC.
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"What have you really seen from a policy standpoint that screams to Wall Street that government wants to be a partner with them versus being against them?" LaRocco says.
"We still have oil companies being painted as villains, and oil, as you know, is a huge, huge job generator in this country," she said. "So a lot of CEOs that I know are not buying it, and they're really concerned in terms of the government's participation within the markets and picking the winners and losers," she said.
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While the economy is officially out of the recession, unemployment rates remain high, making it feel like the country is still in hard times for many.
"I don't see jobs coming back anytime soon. Companies are not being incentivized to hire. They're doing more with less, and they're being more productive. CEOs that I know are not hiring."
The Obama administration has injected money into the economy via stimulus programs, while the Federal Reserve is currently buying government debt held by private banks to get those financial institutions to lend and spur more job-creating investments.
Many business leaders, however, say the Fed's program, known as quantitative easing, will lead to higher inflation rates.
"They want the Fed to back off, at least the ones that I am speaking with. We are seeing inflation in our food, which as you know, there will be a trickle-down effect with the consumer."
Stock prices, meanwhile have risen, yet joblessness rates are still high, which means that fresh gains on Wall Street aren't a cause for champagne and celebration as of yet.
"Our recovery is, indeed, fragile. I think it's too early to assume that the good times are here."
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