Majority of US consumers will ‘struggle’ to make ends meet, investment expert says
The cost of borrowing going up will be a headwind for low to moderate-income consumers,Jim Lowell says
Adviser Investments CIO Jim Lowell discusses the impact of inflation on the American consumer.
During an interview on "Mornings with Maria" Adviser Investments CIO Jim Lowell said that there may be a bifurcated recession, where the top 1 to 15% of consumers will fare pretty well, and the majority of consumers will struggle to make ends meet in terms of household items that they need.
AS INFLATION SOARS, AMERICANS' CONFIDENCE IN THE ECONOMY IS CRUMBLING: POLL
JIM LOWELL: 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 will, in 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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Adviser Investments CIO Jim Lowell weighs in on earnings, the Federal Reserve and inflation.