"Caused by the previous administration" — Shark Tank's Kevin O'Leary on current US inflation rate

Kevin O'Leary, Shark Tank investor, attributed U.S. inflation to the previous administration, not Federal Reserve Chairman Jerome Powell, in a recent interview on The Daniela Cambone Show.

According to O'Leary,

"Inflation wasn't caused by Powell. It was caused by the previous administration bringing four bills of trillions of dollars, 50% on the dollar is probably wasted."

Inflation has been a major concern for many Americans, as it continues to affect the cost of living and economic stability. The Shark Tank investor's comments highlight his perspective on the impact of government spending during the pandemic.

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Shark Tank investor Kevin O'Leary discusses inflation's roots and economic challenges in the U.S. and Canada

The role of the previous administration

In his Instagram post on February 1, 2025, Kevin O'Leary explained in the interview how the inflationary pressure facing the U.S. economy can trace its roots to the previous administration. He emphasized that large amounts of government spending, especially financial bills, significantly contributed to an increase in inflation.

"The previous administration threw trillions into the economy, and now we’re paying the price," O'Leary highlighted.

According to O'Leary, spending bills, including the Inflation Activation Act and the Infrastructure Act that had been passed in the wake of the pandemic, were unnecessary.

The Shark Tank investor underlined his belief in the fact that a huge quantity of money had been injected into the economy only to yield rather meager, if any returns. He mentioned the fact also that government money support was somewhat excessive, mentioning,

"Too much cash out of a helicopter? You get inflation."

O'Leary's remarks suggest that the influx of money into the economy led to an imbalance that contributed to rising inflation levels.

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Federal reserve's role in inflation control

O'Leary addressed the role of the Federal Reserve in managing inflation, stating that Jerome Powell, the current Chairman of the Federal Reserve, did not cause inflation. Rather, he sees Powell's actions as consistent with the broader economic conditions. He said,

"Powell has been an even keel. Inflation wasn't caused by Powell."

O'Leary also discussed the limitations of government influence on the Federal Reserve. He highlighted the challenge of trying to control the Fed, especially when such actions go against constitutional principles. The Shark Tank investor explained,

"Trump thinking he can control the Fed? Not gonna happen—it’s unconstitutional."

In O'Leary's view, Powell's steady leadership is crucial in the face of higher-than-expected inflation rates. He believes that the Fed's approach to inflation control is appropriate, given the ongoing challenges in the U.S. economy.

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Canada's economic challenges

While O'Leary focused on the U.S. inflation situation, he also provided insight into Canada's economic struggles. He pointed out that the country is facing its own set of challenges, which have led to an economic decline. The Shark Tank investor remarked,

"Canada is in full economic decline. Even its own pension funds won’t invest there!"

O'Leary pointed out several indicators of Canada's economic problems, such as stagnant GDP growth, high debt per capita, and low foreign investment. He said that these factors have made Canada experience a decline in its financial health.

"It’s got economic decline by every single metric you can measure, whether it be GDP growth, debt per capita, foreign investment per capita, which is stalled out." he explained/

The Shark Tank investor also noted the impact of these economic factors on Canadian pension plans. O'Leary explained,

"Even Canadian pension plans don't invest in Canada."

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