Stagflation Fears Mount as Trump's Tariffs Bite and Economic Data Softens
Summary
Mounting fears of stagflation, driven by Trump's tariffs and softening economic indicators, are fueling market volatility and raising concerns about high inflation coupled with sluggish growth, though a severe crisis has not yet materialized.
Key Points
- Fears of stagflation (high inflation and slow economic growth) are rising as Trump's tariffs take effect and economic data shows signs of slowing
- Sentiment indicators like consumer expectations and manufacturing surveys are pointing to stagflation risks, though hard data remains solid for now
- The situation is causing volatility in markets, with stocks selling off and bond yields falling, though a full-blown crisis is not yet apparent