CINCINNATI — Dr. Abdullah Al-Bahrani, an economist at Northern Kentucky University's Haile College of Business, emphasizes that uncertainty is the biggest worry right now, particularly as people anticipate increases in tariffs affecting price levels.
"Although tariff policy hasn't been fully implemented, a lot of firms are already introducing price hikes and anticipation of future increases in their cost of goods that they are going to be selling," Dr. Al-Bahrani said.
This impact can be felt across various sectors, especially when purchasing new vehicles, clothing, and household products.
See what Al-Bahrani has to say about the concerns of tariffs possibly affecting price levels in the video player below:
In light of these economic pressures, Procter & Gamble recently announced it would be cutting 7,000 jobs, citing challenges from tariffs and slower growth.
"What we are actually seeing is credit availability in the market is actually decreasing, we're seeing income growth lag behind inflation rates, so the consumers are starting to feel the squeeze and companies are expecting consumers will stop spending, and therefore they will not need as many people working," Dr. Al-Bahrani said.
He highlighted a disconnect between current data and market expectations.
"The Federal Reserve is looking at this data, and they're hoping that inflation falls towards their 2% target. Any data that shows that inflation is higher than that 2% means that we won't be seeing interest rates cuts in the future either," Dr. Al-Bahrani said.
Amid this uncertainty, Dr. Al-Bahrani urges consumers to stay informed about the economic landscape.
"I wish I had answers other than the fact that tell you that's the entire market, the entire market is worried about what's going to happen next," Dr. Al-Bahrani said.
