Sticky inflation data is a reminder of market’s stagflationary fear
The latest CPI data did nothing to cool the market’s fears that we could be headed into a perfect stagflationary storm of low economy growth and sticky, elevated inflation.
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.
Loading...
James Thomson is senior Chanticleer columnist based in Melbourne. He was the Companies editor and editor of BRW Magazine. Connect with James on Twitter. Email James at j.thomson@afr.com
