Despite the economy being plagued by continuous inflation, Intuit predicts healthy consumer spending, according to firm CEO Sasan Goodarzi, who spoke to CNBC’s Jim Cramer on Monday.
Goodarzi pointed out that the financial software company has access to data on consumer spending, staff hiring rates, and hours worked.
In a “Mad Money” interview, he claimed, “When we look at those factors now versus even pre-pandemic, they’re actually fairly robust.”
His remarks come at a time when the attention of investors is on the Federal Reserve’s forthcoming meeting as a result of an August inflation report that was hotter than anticipated and a warning from FedEx last week about an oncoming global recession.
In its next effort to combat inflation, the Fed is predicted to hike rates by another 75 basis points, dashing summertime expectations that the central bank may start acting less forcefully.
Although consumer spending seems to be high, the chief executive cautioned that it won’t necessarily stay that way.
“In actuality, we do need to regulate this environment. Simply put, we need to be very careful about how we proceed so that we don’t go from the high unemployment that we currently have to a significant unemployment situation, as this is ultimately what affects consumer spending, he said.