On Investing cover image

On Investing

Considering the Risk of Stagflation & Uncertainty

Mar 21, 2025
Liz Ann Sonders and Kathy Jones dive into the implications of a recent Federal Reserve meeting, emphasizing the looming threat of stagflation. They explore the intricacies of inflation, discussing consumer perceptions and the effects of monetary policy changes. The impact of rising trade policy uncertainty on businesses is also highlighted, alongside the disconnect between soft and hard economic data. The conversation underscores the importance of tracking essential economic indicators to navigate an unpredictable economic landscape.
18:56

Podcast summary created with Snipd AI

Quick takeaways

  • The Fed's recent projections highlight significant concerns about stagflation, indicating persistent inflation coupled with stagnant economic growth ahead.
  • Growing uncertainty in the economic landscape poses challenges for businesses, emphasizing the need for clearer policies to navigate fluctuating conditions.

Deep dives

Federal Reserve's Economic Outlook

The Federal Reserve's recent meeting highlighted concerns regarding stagflation and uncertainty. The Fed maintained the current interest rate of 4.25% to 4.50%, while projecting higher inflation and lower economic growth than previously anticipated. This shift in projections raises alarms about a potential stagnation in economic growth alongside persistent inflation. By emphasizing the need to remain cautious, especially in light of various governmental policies affecting the economy, the Fed indicated they are not ready to make any significant policy changes.

Remember Everything You Learn from Podcasts

Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
App store bannerPlay store banner
Get the app