King’s College business and economics professor Brian Brenberg has warned that Americans are starting to feel their “disposable income squeezed” as inflation continues to rise nationwide.
“Disposable income is falling behind,” Brenberg said in “Making Money with Charles Payne” on Tuesday.
“I think it’s hard to ask someone, ‘What do you think inflation is going to look like in the future?’ But when you ask them how much more money do you need to…cover those costs, they kind of get that,” he remarked.
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Brenberg added that Americans hadn’t seen the wage gains “big enough” to keep up with inflation and suggested the Fed was “falling behind.”
Americans would need to earn 7% more than a year ago to maintain their standard of living, according to a survey released by the Cleveland Fed.
The Fox News contributor pointed out that Americans are switching away from the products they normally buy at a grocery store to “deal” with inflation and said he was “concerned” for the US economy since prices “are not coming down “.
Brenberg’s comments come on the heels of Federal Reserve Governor Lael Brainard saying Tuesday that the Fed is “only beginning to understand how inflation experiences vary from household to household.”
“It’s devastating. The Fed says we don’t understand that inflation is hitting low-income households[holds]…we already know that,” he told FOX Business host Charles Payne.
“That’s the problem. The Fed and the administration have been so far behind and…apparently it’s because they don’t understand that when you live on low margins, inflation kills you.”
Payne asked Brenberg how Americans were going to come out of the inflation spurt.
“Part of it is clearing your way…” he replied.
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“The other thing we could do is take the air out of one of those big cost drivers, which is oil and gas. If we put a full effort into this country to pump and produce…move with pipelines I do I think it would make a difference. It would definitely increase the confidence a bit.