Recent U.S. economic data has fueled concerns about stagflation, a scenario marked by high inflation and slowing economic growth. Key indicators show that inflation remains stubbornly high, while economic expansion is losing momentum, raising fears of a challenging economic environment.
Adding to these concerns, U.S. President Donald Trump’s proposed tariff measures are expected to drive up prices for both consumers and businesses. Analysts warn that higher import costs could lead to increased prices on essential goods, further straining household budgets and reducing corporate profit margins.
At the same time, a new survey reveals that Americans are growing increasingly pessimistic about the economic outlook. Rising living costs, uncertainty over future Federal Reserve policies, and fears of a potential recession are contributing to declining consumer confidence. Experts caution that if these negative sentiments persist, they could dampen spending and investment, further exacerbating economic challenges.
With financial markets reacting to the uncertainty, economists warn that prolonged stagflation, combined with protectionist trade policies, could significantly impact economic stability in the coming months.
(By Ziqi Qin)