"I don't believe in fairy tales, and I don't believe in new eras," Rosenberg said in a recent interview with Insider. The resumption of student loan payments this fall will also cut into spending, Rosenberg predicted. As excess stimulus erodes, the consumer savings rate is sliding. Higher oil and gas prices are also hurting consumers, Rosenberg said. "And they need the money because they're seeing strains on their finances from this 525 basis point runup in rates start to bite into their debt service capacity."

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Persons: David Rosenberg, Rosenberg, they've, Rosenberg doesn't, it's, Louis Organizations: Bank of America, Rosenberg Research, Federal Reserve, of Locations: Saudi Arabia