Energy Shock, Inflation & the Squeeze on American Households

In this episode of Everyday Economics, we examine the growing squeeze on the American household as inflation pressures, rising energy prices, and higher interest rates all collide at once. Oil shocks near the Strait of Hormuz, tariff-driven price increases, and rising borrowing costs are putting pressure on businesses and consumers alike — while the Federal Reserve faces increasingly difficult choices under new Chair Kevin Warsh. 📉 In this episode: 🔹 How energy prices and tariffs are squeezing household spending power 🔹 Why businesses are being forced to choose between smaller profits or higher prices 🔹 What “margin compression” means for hiring, wages, and investment 🔹 Why mortgage rates and Treasury yields are climbing again 🔹 How inflation acts like a hidden tax on American families 🔹 Why the Fed may be running out of “clean” policy options We also break down the concept of “demand destruction,” why real disposable income is flattening, and what higher gas and grocery pri...