The number of articles mentioning “stagflation” just spiked to the highest level since June 2022.
News stories on Bloomberg citing “stagflation” reached more than 600 on Thursday.
This came after US GDP growth for Q1 2024 GDP came in at 1.6%, well below the 3.4% growth rate in Q4 2023.
Then, the PCE Price Index came in at 3.7% and PCE inflation jumped for its 2nd straight month.
A weaker economy with persistent inflation, also known as stagflation, is the worst case scenario for the Fed.
Has the era of stagflation officially begun?
