Johns Hopkins Professor Steve Hanke Blames Biden's 'Blunders,' Fed For Plummeting Deal Activity And 'Worse Off' Household Finances

Steve Hanke, a professor of Applied Economics at Johns Hopkins University, has criticized the Federal Reserve’s monetary policy and President Joe Biden’s administration for a sharp drop in deal activity last year.

Hanke cited a Bloomberg article from December, which highlighted aggregate deal value declines of 50% in China and 45% in the U.S.

Also Read: How To Invest In Startups

“Research firm Preqin found that venture capital deal flow PLUMETTED 42% in 2022. That topped the DotCom & 2008 crashes. Investors can thank the DOUBLE WHAMMY of Pres. Biden's BLUNDERS and the FED's monetary mismanagement for squeezing deal flow,” he tweeted.

The report also pointed out that venture capitalists, who increased spending over the last 10 years, are cutting back after rising interest rates made capital expensive and challenged the tech industry’s growth-at-all-costs mindset.

Financial Condition: Hanke also pointed out that many U.S. households are of the view their financial condition has deteriorated in the last two years.

“According to a survey by @UMich, the majority of low-, middle-, and high-income U.S. households believe their financial situation has gotten 'worse off' over the last two years. Who's to blame? Pres. Biden's blunders & the Fed’s INFLATION tax,” Hanke said in his tweet.

Market participants have been highlighting how the economy has suffered due to the persistent rate hikes by the central bank.

Nobel laureate and noted economist Paul Krugman expressed his skepticism over the consumer confidence data released in late December. He said although it is a commonly known fact the economy is in trouble, the public seems to have shrugged it off. “As 2022 winds down, everyone knows that the economy is in terrible shape — everyone except the public, according to the Conference Board Survey,” he had tweeted.

Read Next: Jack Ma-Ant News: Why Alibaba Shares Are Skyrocketing In Hong Kong Today