What if President Donald Trump’s trade war and spending cuts send the US economy into a slowdown, but the Federal Reserve has to keep sitting on its hands?
Investors got a reminder of the potential for this sort of stagflationary environment (low growth, elevated inflation) on Wednesday night, when the latest reading on American inflation provided little in the way of good news for the Fed.
Source: https://www.afr.com/chanticleer/sticky-inflation-data-is-a-reminder-of-market-s-stagflationary-fear-20250312-p5lj5j