If prices keep rising, a nightmare scenario for the US economy is a real possibility

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Stagflation is a difficult problem to overcome, especially for central bankers at the Fed and around the world. There are few tools to combat both inflation and a slowdown at the same time. The good news is that the economy is still growing at a healthy clip as it recovers from the pandemic recession. The Fed is in uncharted territory, but there is no modern playbook for how to handle the threat of runaway inflation following a global pandemic. Experts say investors need to watch and see if consumers actually slow their spending because of inflation.

Source: https://edition.cnn.com/2022/01/12/econo...index.html

 

                                                      
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