A drumbeat for stagflation as a possible scenario for the US economy is growing louder.
Last week, strategists from the Bank of America wrote that the macroeconomic picture is "flipping from goldilocks to stagflation," which they defined as growth below 2% and inflation of between 3% and 4%. Inflation is higher in developed and emerging markets, while the US labor market is "finally cracking," wrote Michael Hartnett.
JPMorgan Chase's Marko Kolanovic raised similar concerns in February. A halt in inflation's downward trend, or price pressures broadly resurfacing "wouldn't be a surprise" given outsized gains in equities, tight labor markets and high immigration and government spending, he said, according to Bloomberg.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
