With global April’s inflation numbers out next week, Fox News contributor and The King’s College executive vice president of business and economics Brian Brenberg warned that 40-year high consumer prices will carry on – likely to a recession.
“Food prices are at record highs: Corn, soybeans, wheat, and other key input products are still at record highs. Fuel is still hanging at a very high level. Those two things are going to drive inflation here,” Brenberg explained Wednesday on “Fox & Friends First.” “I don’t see a big end in sight for that.”
His comments come on expectations of a 50 basis point interest rate hike by the Federal Reserve Wednesday in a move to combat soaring inflation.
The professor cautioned that decreased consumer spending motivated by increased rates will bring the economy into a recession.
“Inflation’s a bad problem, recession is a bad problem as well,” Brenberg noted.
“This administration and the Fed backed themselves into a corner where we’re facing one or the other right now.”
Brenberg further signalled that a slowdown in the economy means less money in Americans’ pockets. “Jobs have been a fairly good news story in this economy, that could reverse with recession. That means wages start to fall, as well.”
Even if the Fed’s first rate hike brings the current inflation rate down slightly, Brenberg said consumers shouldn’t expect low prices at the gas pump or grocery store.
“The inflation started to kick in in a big way last April. So now you’ve got inflation on top of inflation,” he pointed out. “Even if that rate comes down a little bit, it’s built on previous inflation, which means people are still feeling massive price hikes.”