Majority of US consumers will ‘struggle’ to make ends meet, investment expert says

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Adviser Investments CIO Jim Lowell discusses the impact of inflation on the American consumer.

On the consumer, we always say that we focus on what they do, not how they say they feel. That said, I think the Fed is hoping that sentiment willin fact, begin to tamp down some of the consumer spending.

The cost of borrowing going up, clearly are going to be a headwind for especially low-moderate income consumers. We may have sort of a bifurcated recession going on within our economy where the top 1%, top, even 15% fare pretty well because they can continue to spend their way forward, where the majority of U.S. consumers really struggle just to make ends meet in terms of household items that they need.

 

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