Home » Economy » Stagflation fears surge to highest level since 2008, BofA survey shows: 'Sentiment is dire'
Stagflation fears surge to highest level since 2008, BofA survey shows: 'Sentiment is dire'
Inflation will ‘take a while’ to get under control: OceanFirst Financial CEO
OceanFirst Financial CEO Chris Maher, a Federal Reserve Bank of Philadelphia board member, argues that if the U.S. heads into a recession it will be ‘mild.’
A growing number of economists and money managers are sounding the alarm over a possible return to 1970s-style "stagflation," as the Federal Reserve ramps up its fight to cool sizzling-hot inflation.
A majority of investment fund managers (83%) now say they expect sluggish growth and soaring inflation as the most likely outcome for the economy over the next year – aka stagflation, according to a recent survey from Bank of America Global Research. At the same time, about 73% of respondents expect a weaker economy over the next 12 months, the lowest since the survey started in 1994.
WHAT IS STAGFLATION? WHY ECONOMISTS ARE WORRYING ABOUT A 1970S-STYLE CATASTROPHE
Stagflation is the combination of economic stagnation and high inflation, characterized by soaring consumer prices as well as high unemployment. The phenomenon ravaged the U.S. economy in the 1970s and early 1980s, as spiking oil prices, rising unemployment and easy monetary policy pushed the consumer price index as high as 14.8% in 1980, forcing Fed policymakers to raise interest rates to nearly 20% that year.
EconomyComments Off on Stagflation fears surge to highest level since 2008, BofA survey shows: 'Sentiment is dire'