'Shark Tank' star Kevin O'Leary warns of a 'downsized America' as rising prices and loan payments force consumers to cut back

• Households are being hit hard by inflation and higher interest rates, Kevin O'Leary says.
• Consumers can afford less so they're having to settle for smaller, cheaper homes and cars, he says.
• The "Shark Tank" investor predicts the Fed will hike rates toward 6% to combat stubborn inflation.

Americans are suffering lifestyle erosion because surging prices and steeper borrowing costs mean their incomes don't go as far as they once did, Kevin O'Leary says.