stagflation

The idea with stagflation is, what if you see a rise in consumer prices while the economy is slowing at the same time?

Driving the stagflation prediction is an effective tariff rate of about 11%, with the risk of future levies on pharmaceuticals and the potential lack of a resolution of the China trade dispute.

Economists are warning about a severe recession and “stagflation.”

They say his tariffs and crackdown on immigrants risk a return of 1970s-esque "stagflation", when a sudden oil shock prompted stagnant growth and spiralling prices, except this time the crisis would be self-inflicted.

The unanswered question is whether we are facing a stagnating economy, which might trigger an interest rate cut, or the dreaded stagflation, in which the economy grinds to a halt but inflation persists.