US STAGFLATION FEARS ARE BACK
The latest US economic data just gave the Fed another serious headache.
PCE inflation came in at 3.7%, above the 3.6% expected, and remains far above the Fed’s 2% target.
At the same time, Q2 GDP growth was confirmed at just 1.5%, down from 2.1% in Q1.
That’s the uncomfortable mix markets don’t want to see:
🔥 Inflation is staying hot
🐌 Economic growth is slowing
🏦 And the Fed is stuck in the middle
If the Fed raises rates to fight inflation, it risks putting even more pressure on growth.
The latest US economic data just gave the Fed another serious headache.
PCE inflation came in at 3.7%, above the 3.6% expected, and remains far above the Fed’s 2% target.
At the same time, Q2 GDP growth was confirmed at just 1.5%, down from 2.1% in Q1.
That’s the uncomfortable mix markets don’t want to see:
🔥 Inflation is staying hot
🐌 Economic growth is slowing
🏦 And the Fed is stuck in the middle
If the Fed raises rates to fight inflation, it risks putting even more pressure on growth.