Fox Business reporter delivers gut check on Trump economy: 'Inflation is wiping out wages'

A Fox Business correspondent didn't sugarcoat Thursday's grim economic data, telling viewers point-blank that rising prices are outpacing what workers bring home.Inflation is wiping out wages, correspondent Lauren Simonetti said on Varney Company, reacting to two government reports released Thursday morning that painted a bleak picture for everyday Americans.The reports landed as a gut-check for a president who promised voters he would lower costs on day one. The Federal Reserve uses a measure called the personal consumption expenditures index — essentially a broad gauge of what Americans pay for goods and services — to track inflation. In April, that gauge rose 3.8 over the past year, a three-year high and a step up from 3.5 in March. Paychecks aren't keeping pace: wages grew just 3.6 over the same period, meaning workers are effectively taking a pay cut in real terms.A separate report showed the economy grew more slowly than initially thought — first-quarter GDP was revised down to 1.6 from an initial read of 2.0, missing Wall Street's expectations.The strain is showing up in how Americans are managing their money. The University of Michigan's Consumer Sentiment Index plunged to a record low in May, with 57 of consumers saying high prices are eating into their finances. More than half of U.S. adults are now using credit cards to cover basics like groceries, rent, and utilities, according to a Debt.com survey. The personal savings rate has fallen to 4.0 — down from 6.2 in early 2024.Gas prices aren't helping. The national average for regular gasoline hit a four-year high heading into Memorial Day weekend, with California topping 6 a gallon, according to AAA.Host Stuart Varney acknowledged the pain but kept his chin up. Not that bad, he said — twice.