Tags: Carly Fiorina | Stock Market | Correction | US economy

Carly Fiorina to Fox Business Network: 'I've Been Expecting a Correction'

Image: Carly Fiorina to Fox Business Network: 'I've Been Expecting a Correction'
GOP Presidential candidate Carly Fiorina

By    |   Monday, 24 Aug 2015 12:07 PM

GOP Presidential candidate Carly Fiorina isn’t surprised by the recent market plunge since she said she has expected it all along because the U.S. economy is weak.

“I actually have been expecting a correction for some time now because the underlying fundamentals of the U.S. economy are not that strong,” she told Fox Business Network.

“Two percent growth is pretty lackluster. Of course now we have the Fed Reserve backing off zero interest rates and China’s economy is slowing. There’s no doubt that China has some real issues in front of it and the devaluation of the Yuan as well as the huge selloff in their markets spell trouble ahead, so I think it’s justified,” she said.

“I think people have to take a real look at the underlying fundamentals and what they see is a U.S. economy that’s growing at a very lackluster pace — two percent. They see economies around the world slowing. Europe is not doing well," she said.

"China is slowing dramatically… What I think people are now focused on is, 'guess what the fundamentals of the markets do not justify the economies — and companies in those economies don’t justify these all-time record highs,'" she said.

She said the nation’s central bank helped to create the problem.

“I don’t think there was any excuse frankly for QE2 or QE3. QE1 you can see. Obviously we're in the middle of a crisis, but my own view is that we have politicized the Fed by giving it a duel mandate, full employment as well as inflation," she said.

"I don’t think the Fed has a lot to do with employment frankly. I think that second part of their mandate caused QE2 and QE3 and I think it’s created a problem where they are a real market maker and market mover as opposed to being focused on money supply and inflation,” she said.

Others agree that the U.S. caused its own problems.

“Our financial crisis and stock market decline is not caused by China’s yuan tactics,” said Newsmax Finance Insider Denis Kleinfeld. “The crash of the stock market was caused by our own government.”

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GOP Presidential candidate Carly Fiorina isn't surprised by the recent market plunge since she said she has expected it all along because the U.S. economy is weak.
Carly Fiorina, Stock Market, Correction, US economy
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2015-07-24
Monday, 24 Aug 2015 12:07 PM
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