Turn to 10 on Nostr: Back-to-back disappointing economic reports renew fears of 'stagflation' ========== ...
Back-to-back disappointing economic reports renew fears of 'stagflation'
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Two worse-than-expected economic reports last week have deflated hopes the U.S. economy can make it out of this period of high inflation unscathed. An advanced reading of first quarter GDP showed the economy grew at a sluggish rate of 1.6%, following the booming 3.4% growth that closed out 2023. Then, the watched closest by the came unchanged in March at 2.8%. The stalled progress on fighting inflation has stoked fears of what economists call 'stagflation,' when inflation is high and economic growth is slow or negative. The U.S. experienced stagflation in the 1970s during a period known as 'The Great Inflation.' According to government data, in 1974 and 1975, the economy shrunk while inflation was north of eight and 9%. JPMorgan Chase CEO Dimon said a 'soft landing' is still possible, meaning inflation could return to the Federal Reserve's target rate of 2% without the U.S. experiencing a recession. However, Dimon said he's 'a little more worried that it may not be so soft and inflation may not quite go away (as) people expect.' President Joe Biden's top economic adviser Jared Bernstein said his team is watching the economic factors that have helped stabilize prices. 'Are they just on a break or are they gone?' Bernstein told Bloomberg TV. 'And obviously, we’ve argued that they are still there and that we expect inflation to continue a bumpy path down towards target.'
#Economy #Inflation #Gdp #Stagflation #FederalReserve
https://thenationaldesk.com/news/americas-news-now/disappointing-economic-reports-renew-fears-of-stagflation-inflation-economy-federal-reserve-finances-spending-groceries-home-sales-gas-prices-gdp-united-states-government-data-history-target
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Two worse-than-expected economic reports last week have deflated hopes the U.S. economy can make it out of this period of high inflation unscathed. An advanced reading of first quarter GDP showed the economy grew at a sluggish rate of 1.6%, following the booming 3.4% growth that closed out 2023. Then, the watched closest by the came unchanged in March at 2.8%. The stalled progress on fighting inflation has stoked fears of what economists call 'stagflation,' when inflation is high and economic growth is slow or negative. The U.S. experienced stagflation in the 1970s during a period known as 'The Great Inflation.' According to government data, in 1974 and 1975, the economy shrunk while inflation was north of eight and 9%. JPMorgan Chase CEO Dimon said a 'soft landing' is still possible, meaning inflation could return to the Federal Reserve's target rate of 2% without the U.S. experiencing a recession. However, Dimon said he's 'a little more worried that it may not be so soft and inflation may not quite go away (as) people expect.' President Joe Biden's top economic adviser Jared Bernstein said his team is watching the economic factors that have helped stabilize prices. 'Are they just on a break or are they gone?' Bernstein told Bloomberg TV. 'And obviously, we’ve argued that they are still there and that we expect inflation to continue a bumpy path down towards target.'
#Economy #Inflation #Gdp #Stagflation #FederalReserve
https://thenationaldesk.com/news/americas-news-now/disappointing-economic-reports-renew-fears-of-stagflation-inflation-economy-federal-reserve-finances-spending-groceries-home-sales-gas-prices-gdp-united-states-government-data-history-target