Fox Business: With the Economic Tumult, a Serious Concern Has Emerged: Stagflation
Article by Eric Revell in Fox Business
Economic uncertainty brought on by President Donald Trump's tariffs on U.S. trading partners is raising concerns that the economy could face stagflation if conditions persist.
Stagflation is a term used generally to describe a scenario in which economic growth is stagnant while it's also experiencing high inflation, causing consumer prices to rise and potentially contributing to a weak labor market and, ultimately, higher unemployment.
Tariffs are taxes on imported goods, which are paid by importers who typically pass some or all of the higher costs they face on to consumers through higher prices, is a dynamic that has raised concerns about a resurgence of inflation. Consumers' inflation expectations have risen in recent months in surveys by the Federal Reserve ahead of tariff-induced price hikes being tacked on to many consumer goods.
Recent economic data has added to concerns about the potential onset of stagflation. Data released last week by the Commerce Department showed that U.S. gross domestic product (GDP) contracted at an annual rate of 0.3% in the first quarter of 2025. That marked the first ......