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If the average tariff rate passes 20%, that could push the US into stagflation territory and give the economy a growth shock, Citi says.
Stagflation — a combination of inflation and economic stagnation — is bad news for the economy and you. Here’s what stagflation means, its causes, and how it affects your money.
Economists are sounding the alarm that the U.S. may be sliding into a period of stagflation—a toxic mix of stalled growth, rising unemployment, and accelerating inflation that has historically proven hard to escape. On Sunday, Richard Clarida told Bloomberg Surveillance that there was already "a whiff of stagflation" in the U.S.
The word stagflation has been circulating in the talking points for the U.S. economic future, either as a short-term possibility or farther reaching, as investors and financial advisors warn consumers that a period of stagnation is a possibility in the months to come.
Stagflation has become the latest buzzword in financial markets as President Trump promises more tariffs, with reciprocal levies set to come as soon as Wednesday. Concerns about stagflation, a bleak economic scenario in which growth stalls,
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Aditya Bhave, a Bank of America senior U.S. economist, discusses with co-hosts Telis Demos and Miriam Gottfried what we can expect from the forthcoming jobs report and how it will offer a big clue to where the economy is heading.
Federal Reserve Chair Jerome Powell acknowledged last week that inflation had started to rise "partly in response to tariffs."
Stocks ended the final full week of March on a sour note, and a combination of sticky inflation and jitters over consumer health is getting much of the blame.