With April inflation numbers due next week, Fox News contributor and King’s College executive vice president for business and economics Brian Brenberg warned that 40-year high consumer prices will continue, likely into a recession.
“Food prices are at record highs: corn, soybeans, wheat and other key input products are still at record highs. Fuel is still very high. Those two things will drive inflation here,” Brenberg explained Wednesday on “Fox & Friends First.” “I don’t see a grand end in sight for that.”
His comments come on expectations of a 50 basis point interest rate hike by the Federal Reserve on Wednesday in a move to combat runaway inflation.
The professor warned that the decrease in consumer spending caused by the increase in rates will lead the economy into a recession.
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“Inflation is a bad problem, recession is also a bad problem,” Brenberg said. “This administration and the Federal Reserve have backed themselves into a corner where we’re up against one or the other right now.”
Brenberg further noted that a slowdown in the economy means less money in the pockets of Americans.
“[Businesses] they stop investing, they stop hiring, which means that we are now talking about a job problem,” he said. “Jobs have been pretty good news in this economy, which could reverse with the recession. That means wages are also starting to fall.”
Even if the Fed’s first rate hike lowers the current rate of inflation slightly, Brenberg said consumers shouldn’t expect low prices at the gas station or in the supermarket.
“Inflation started to go up very much last April. So now you have inflation on top of inflation,” he said. “Even if that rate goes down a bit, it’s based on past inflation, which means people still feel massive price increases.”
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Brenberg believes that the Biden administration is trying to find “every other topic to talk about,” but that inflation is on the minds of all Americans.
“Whether you’re talking about food, whether you’re talking about fuel, we’re talking about housing, whatever the area, people are caught up in this and they feel it intensely,” he said. “It’s not just that it’s a small problem for them, they say, ‘This is a big problem for me.'”
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