Consumer's drive to keep 'marching forward' will soon be 'quite difficult': Fmr economic council director

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Consumers will face ‘difficult’ financial adversities in 2nd half: Larry Lindsey

The Lindsey Group CEO Larry Lindsey reacts to the May core PCE price index report and predicts a negative second half on ‘Mornings with Maria.’

During an interview on "Mornings with Maria," Thursday, former economic council director Larry Lindsey provided analysis of May's core PCE report, arguing there are several signs suggesting that America is currently in a recession. 

LARRY LINDSEY: …So we are going to have inventory decline that's going to contribute to a negative second half, which already is going to have weak consumption. But the other thing, if I may, we neglect CPI, and we shouldn't. 

Inflation rising (istock / iStock)

We've done a calculation that shows that for a typical four-person family with a median for person family income, 90% of their raise in the last 12 months has gone just to food and gasoline prices, which have gone up. That doesn't leave very much left over for everything else, and it also means that those other things went up in price as well. So it seems to us quite difficult for the consumer to keep marching forward. 

FED NEEDS TO 'ACT DECISIVELY TO KILL INFLATION': BILL ACKMAN

WATCH THE FULL INTERVIEW HERE:

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America has been in recession since May: Former economic council director

Former economic council director Larry Lindsey weighs in on the state of U.S. economy ahead of the PCE inflation report on ‘Mornings with Maria.’

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