COLUMBUS, Wis., May 13, 2025 (GLOBE NEWSWIRE) — In light of this morning’s Consumer Price Index (CPI) report from the U.S. Bureau of Labor Statistics (BLS), Michael Eisenga, CEO of First American Properties, released the following statement addressing concerns about the current economic trajectory and the Federal Reserve’s continued policy stance:
“The data is clear: economic pressure is mounting, and yet the Federal Reserve appears increasingly disconnected from the reality businesses and households are facing.
In the first quarter alone, large company bankruptcies were up 7% year-over-year, and 8 more major corporate bankruptcies have been filed in May as of the 8th. That’s a warning signal the Fed can’t afford to ignore.
Today’s CPI report for April shows inflation is softening: headline CPI rose just 2.3% year-over-year, down from 2.4% in March, and came in below expectations. Gas, fuel, and food prices are all declining — evidence that inflation is, in fact, cooling and tracking toward the Fed’s target.
Still, core CPI — which excludes food and energy — came in at 2.8% year-over-year, up from 2.4% in March. While that uptick raises concern, it’s critical to understand what’s behind the numbers. Shelter accounted for more than half of the monthly increase, and energy costs also ticked up. Yet, many businesses report they cannot raise prices due to consumer resistance. That’s not inflationary — that’s demand suppression.
The idea that rising input costs automatically result in higher consumer prices is flawed. Higher input prices don’t translate to inflation when customers can’t afford to pay more. The reality is: margins are being squeezed, and growth is slowing.
On the labor front, the BLS recently revised down job creation by 800,000 for the 12-month period ending March 31, 2025 — and that accounts for only half of the full-year revisions. It’s likely we’ll see net-negative job creation in the coming months. These downward revisions are a significant red flag that calls into question the strength of the labor market the Fed is citing.
As a business leader, I urge policymakers to take a more nuanced view of the data. The cracks in the foundation are becoming harder to ignore — and continued tightening or inaction risks turning a slowdown into something far worse.”
First American Properties remains committed to responsible investment and transparent economic dialogue in the real estate and business communities.
About First American Properties
First American Properties is a Midwest-based real estate investment and development firm focused on commercial and residential properties across key regional markets. Led by CEO Michael Eisenga, the firm brings strategic insight and a commitment to long-term value in all aspects of property development and management.
For press inquiries, please contact:
meisenga@firstamericanusa.com
