A self-proclaimed “free trade guy,” Home Depot co-founder Ken Langone waved the warning flag over American markets and the economy due to one “scary” indicator.
“I really believe, and I hope Washington hears this, that we have to be mindful of the importance of our status in the world economy and the world markets, because if we fritter that away, we’re in trouble,” Langone told Fox News’ Bret Baier on “Special Report” Tuesday.
“Look at the amount of debt we raise every year,” he continued. “What is it today? Thirty-six, thirty-seven [trillion dollars], going up a trillion a year in interest alone. That’s scary.”
Stocks ticked higher on Wednesday as investors await the Federal Reserve’s latest interest rate decision.
NATIONAL DEBT TRACKER: AMERICAN TAXPAYERS (YOU) ARE NOW ON THE HOOK FOR $36,214,669,844,058.55 AS OF 6/17/25
The Dow Jones Industrial Average was up more than 20 points, or 0.07%, while the S&P 500 and Nasdaq Composite rose 0.1% and 0.2%, respectively.
The Fed will announce its latest decision on whether to cut interest rates on Wednesday. The central bank and Chairman Jerome Powell have faced mounting political pressure from the Trump administration to lower rates to spur the economy.
Langone argued against any more rate cuts for the time being.
“Don’t forget, we’ve now got this Iranian thing to go along with tariffs. I mean, you go up and down the list. And I think that because people have to watch so much, they’re going to the sidelines. I think people are getting cautious. And the facts and numbers that came out today indicated that things are slowing,” Langone cautioned while referencing weak monthly retail sales and manufacturing.
The Fed is widely expected to leave interest rates unchanged this week, which would make it four straight meetings in which the central bank has left rates unchanged. The benchmark federal funds rate has been at a target range of 4.25% to 4.5% since the Fed’s last interest rate cut in December.
“Four weeks ago, we couldn’t float a 20-year bond. They were unbiased. That’s a dangerous signal. That’s the beginning,” the Home Depot co-founder said. “That should make us say, ‘Hey, wait a minute.’ When the integrity of our debt is subject to question, the next thing is your currency.”
“Now, I’m not suggesting we need to go around with a tin cup, because we don’t,” Langone further pointed out. “But I do think it’s time to get some balance here.”
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FOX Business staff contributed to this report.
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