Brandon Parsons Weighs in on Inflation’s Impact and Financial Strategies

March 31, 2025

As inflation concerns grow, middle-class Americans are feeling the strain of rising costs in housing, food, and healthcare. A recent GoBankingRates article highlights a sharp decline in the University of Michigan’s Index of Consumer Sentiment, signaling increased financial anxiety, while the latest Consumer Price Index (CPI) shows inflation climbing back to 3% annually. With high prices persisting, many households are adjusting budgets and reconsidering major financial decisions.

Economist and Pepperdine Graziadio faculty member Brandon Parsons warns that interest rates are unlikely to drop if inflation remains above 3%, making mortgages, car loans, and business investments more costly. "It is unlikely the Federal Reserve will reduce interest rates in this environment," he explains. With mortgage rates still above 6% and potential tariffs driving up auto prices, financial pressure on consumers continues to mount.

To navigate these challenges, Parsons recommends investing in inflation-resilient assets like real estate, gold, and Treasury Inflation-Protected Securities (TIPS) while avoiding low-yield savings accounts. He also emphasizes increasing earnings through salary negotiations, career advancement, or side hustles to stay ahead of rising costs. As inflation reshapes financial strategies, proactive planning remains crucial.