Billionaire Ken Langone Warns: Inflation ‘Not Transitory,’ a ‘Lot Worse Than People Think’

Billionaire Ken Langone warned Wednesday the shocking rise of inflation would become “a lot worse” than Americans realized.

“Let me give you a warning,” Langone said in a morning interview on CNBC Squawk Box, where he appeared with former Honeywell CEO Larry Bossidy. “This inflation is a lot worse than people think. It is not transitory. And trust me, the little people — people like my parents and Larry’s parents — they’re going to suffer. … It hits the poor people hardest of all.”

Inflation rose by 6.2 percent in October, according to figures released by the Labor Department on Wednesday, exceeding 5 percent for the fifth consecutive month.

The 86-year-old Langone, who played a key role in financing the creation of Home Depot, has warned of encroaching inflation for months, disagreeing with the Biden administration’s assertion that price levels will recede, and has argued that proposals for new spending will exacerbate it. “I think you’re going to take a white-hot fire and throw a 5-gallon gas can on top of it,” he said in July, speaking in reference to President Joe Biden’s proposals at the time for $4 trillion in new spending.

“You’re going to have flames so high it’s going to be incredible,” he added. I don’t believe this is transitory. I don’t believe this is temporary.”

Biden’s $1.2 trillion infrastructure proposal passed Congress on Friday. A proposal for an addition $3 trillion was trimmed to $1.75 trillion after lingering in Congress for months, thanks largely to Sen. Joe Manchin (D-WV). Langone, a Republican, commended Manchin for his efforts, and noted that he was hosting a fundraiser for the contrarian Democrat.

“Thank God for Joe Manchin,” Langone said. “The guy’s got guts and courage. … I’m going to have one of the biggest fundraisers I’ve ever had for him.”

Watch above via CNBC.