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When sky-high inflation pummeled Americans in 2022, the labor market was booming and wages were rising, softening the blow.
Now we're in a more vulnerable place.
Why it matters: With economists expecting tariffs to drive inflation, at least in the short-term, the concern is wages won't keep up, leading to lower incomes and real pain for many.
What they're saying: "The pinch from higher prices that we expect in coming months may hit harder than in the post-pandemic inflation spike," wrote J.P. Morgan chief economist Michael Feroli in a note Friday.
ING chief international economist James Knightley said "we are expecting to see negative real wage growth by the summer," in an email commentary after the jobs report last week.