Gas, food prices will continue to climb with ‘no end in sight,’ economics professor warns
Record prices will drive inflation into recession, Brian Brenberg says
High gas, food prices have 'no end in sight': Brenberg
Fox News contributor and The King's College business and economics professor Brian Brenberg argues rising energy and food costs will drive inflation.
With 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 40-year high consumer prices will carry on – likely to a recession.
"Food prices are at record highs: Corn, soybeans, wheat, other key input products still at record highs. Fuel 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 decreased consumer spending motivated by increased rates will bring the economy into a recession.
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"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 signaled that a slowdown in the economy means less money in Americans’ pockets.
Fox News contributor and The King's College business and economics professor Brian Brenberg argues President Biden and the Fed back themselves "into a corner" with inflation and recession, "where we're facing one or the other right now." (istock / iStock)
"[Businesses] stop investing, they stop hiring, which means now you're talking about a jobs problem," he said. "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."
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Brenberg warns Biden admin 'backed itself into a corner' on inflation, recession: 'Facing one or the other'
Fox News contributor Brian Brenberg joined 'Fox & Friends First' to discuss inflation and the implications of a potential recession.
Brenberg believes the Biden administration tries to find "any other topic to talk about," but that inflation is on every American’s mind.
"Whether you're talking about food, whether you're talking about fuel, we're talking about housing, whatever the area, people are getting nailed by this, and they feel it intensely," he said. "It's not just that it's a little bit of a problem for them, they're saying, 'This is a serious problem for me.'"