Economy is fantastic
During his interview with the S&P Global Platts, Cleveland-Cliffs’ (CLF) CEO, Lourenco Goncalves, also talked about the US economy. He said, “The [US] economy is fantastic.” To underscore this point, Goncalves said that he is building a plant in Toledo, Ohio, and currently, 900 people are working on the plant. He mentioned that he could have used more workers, but that he couldn’t find them because “they are busy. There is a lot going on in this country.”
Self-inflicted problems of the Western world
Goncalves believes that most economic problems of the Western world are self-inflicted, including the Fed in the US and Brexit in the UK. In a shot at the US Fed, he said that the Fed’s mandate is to oversee growth and employment. He said, “Their mandate is not just inflation.” He added, “Their mandate is supporting the policies that will allow this country to grow and deliver on employment.” He mentioned that since the US already has low inflation, he wonders if they now want deflation.
Advice for Trump
He also had a word of advice for President Trump. Goncalves mentioned that the biggest problem with the US economy (SPY) is that the rich are becoming richer, while the middle class is shrinking. So, while the economy is improving, the general population remains poor. Goncalves wants Trump to address this issue. Goncalves also added a word of caution for Trump saying, “He needs to execute better and create fewer enemies on the outside.”