2 experts outline a looming scenario where the US economy could end up caught in a dreaded period of stagflation

Slower growth and rising inflation has brought back distant cries that stagflation is coming. This would force interest rates to stay higher for longer, putting pressure on US businesses and consumers. One investor says anyone looking to hedge this risk should focus on fixed income.

A pair of economic reports has brought back a word no central banker ever wants to hear: stagflation.

The difficult scenario occurs when inflation rises and growth stalls, a dangerous combination just experienced by the US economy.

Worries emerged when Thursday's first-quarter GDP reading slumped against expectations, growing at an annualized 1.6% rate. That's a considerable slowdown from previous quarters, and falls well under estimates of 2.5%.

We have beeeeeeeeeeeeeeeeeeeeeeen in stagflation. The FED is just twiddling their thumbs now.

Umpossible.... best economy ever. Just watch the news.

22 posted on 04/28/2024 8:43:32 AM PDT by Organic Panic (Democrats. Memories as short as Joe Biden's eyes.)

OH great back to the future 70’s style stagflation. OH joy oh bliss i cant wait... NOT

23 posted on 04/28/2024 12:22:29 PM PDT by markman46 (engage brain before using keyboard!!!)

It’s going to take years to clean up Biden & stooge members destruction.

Only they can F/U a socialism plot like everything else they do.

To: AdmSmith; AnonymousConservative; Arthur Wildfire! March; Berosus; Bockscar; BraveMan; cardinal4; ...

The reelection of Joe Biden (although he wasn't elected in the first place).

25 posted on 04/28/2024 3:11:37 PM PDT by SunkenCiv (Putin should skip ahead to where he kills himself in the bunker.)

I didn’t think anyone could be worse than Jimmy Carter.
Biden has managed to do it.

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