stagflation

Dimon warns of US stagflation risk, says Fed right to hold

Trump’s chaotic tariff announcements and efforts to shrink or shutter government agencies have stoked concerns about trade, inflation, unemployment and a potential recession

After a rally in US government debt that sent the two-year yield to touch the lowest since 2022, traders are positioning for more gains and pricing in a greater chance the Federal Reserve moves most aggressively to cut interest rates to keep the economy from stalling.

Treasuries star as haven bet even as Trump fans stagflation woes

SHELL-SHOCKED investors are piling into US Treasuries on concern that Donald Trump’s trade war will trigger a worldwide recession - ignoring for now, at least, the risk that the same punitive tariffs ...

In new projections this week, Fed officials said they expect slower growth and higher inflation in the year ahead, with risks tilted to the upside.

Trump trade upheaval leaves foreign central banks guessing

[WASHINGTON] Slowing economic growth mixed with a bout of renewed inflation risks moving the US from global overachiever to a drag on the rest of the world as foreign central banks and others confront...

The Fed must balance the risk of cutting rates too soon, which could reignite inflation, against keeping them too high, which may weaken growth.
THE BOTTOM LINE

Tariff turmoil and the Fed: A stagflation minefield

[Claremont, California] After a prolonged period of interest rate hikes to curb inflation, the Federal Reserve held the federal funds rate at a two-decade high of 5.5 per cent from July 2023 to August...

A survey on Wednesday showed two-thirds of British retailers plan to raise prices this year in response to higher employer social security costs, adding to households’ high living costs.

UK stagflation risk adds pressure on Reeves after market volatility

BRITISH inflation figures will be closely watched on Wednesday as a sharp jump in government borrowing costs, concerns about domestic and global price pressures and a weak economy put growing pressure...

BOE governor Andrew Bailey and his colleagues are likely to strike a wary tone given the inflation threats brewing at home and abroad.

Bank of England set to skip rate cut as stagflation looms

THE Bank of England (BOE) is likely to warn of only gradual interest-rate cuts in 2025, ending the year with a cautious message to investors as the spectre of stagflation – anaemic growth and sticky i...

Housing costs are the single biggest contributor to the country’s ongoing inflation, Yellen told Fox Business while on a trip to Kentucky to highlight President Joe Biden’s efforts to boost economic growth.

Yellen says US economy unlikely to see ‘stagflation’

THE US economy is not expected to see stagflation, Treasury Secretary Janet Yellen said in an interview broadcast on Wednesday, adding that most forecasters expect inflation to cool as housing costs m...

United Auto Workers union members gather for a rally on Sep 4. The union is in contract negotiations with Ford, General Motors, and Stellantis. The current UAW contract expires on Sep 14.

The ‘misery effect’ is back with a vengeance as US labour strikes take a toll

IT FEELS like the 80s all over again these days, with labour fights, wage-price spirals and misery everywhere.

India’s annual retail inflation rose sharply to a 15-month high of 7.44 per cent in July from 4.87 per cent the previous month, fuelled by a sharp jump in vegetable and cereal prices.

Stagflation risk in India remains low despite recent jump in prices

The risk of stagflation, a period of weak growth and high inflation, remains low in India despite a sharp uptick in prices, the Reserve Bank of India said in its August bulletin on Thursday (Aug 17).

Despite the US economy showing resilience, concerns remain among investors that a recession could happen in an environment of stubborn inflation and high borrowing costs.

Goldman Sachs planning for sluggish growth, higher inflation

Goldman Sachs Group is planning for a period of sluggish growth and higher inflation, the bank’s president John Waldron said on Thursday (Jun 8), calling it “a mini-stagflation scenario”. There will b...