Recent data shows stagflation, stagnant growth and price inflation, is possible as economy shaken by uncertainty

Good news, everybody!

It’s a strange time for the US economy. Prices are rising, jobs growth has stalled, uncertainty is everywhere and stock markets have soared to record highs. Against this background a scary word last used in the 1970s is being uttered again: stagflation.

  • Midnitte@beehaw.orgEnglish
    5·
    19 hours ago

    I really hope the irony is cemented into history books.

    Jerome Powell did a frankly amazing job preventing us from entering stagflation because he looked to lessons from history, and specifically what Chairman Paul Volcker did to solve stagflation.

    Yet, here we are, because the president is a dumbass. Super ironic that he appointed Powell in his first term too. It’s like the scene from Chernobyl where he tells the general that they sent the one good man.

    • Powderhorn@beehaw.orgOPMEnglish
      2·
      13 hours ago

      I think a large part of the problem is people think the Fed funds rate has any bearing on mortgages. It’s a nice, simple story, but past the auction, you’re now playing with Treasury yields. Banks don’t issue mortgages based on the overnight lending rate.

      I do applaud Powell for holding his ground. It will make his book come across better.

  • TehPers@beehaw.orgEnglish
    5·
    1 day ago

    “You’re going to see job numbers like our country has never seen.” [- Trump]

    Can’t wait to see what that looks like. We’re talking like 40% unemployment? 50%?