Thoughtful Money with Adam Taggart Stephanie Pomboy: Signs Of Stagflation Are Multiplying
Mar 4, 2025
Stephanie Pomboy, a macroeconomic expert, shares her sharp insights on the alarming signs of stagflation and persistent inflation in today’s economy. She highlights concerning GDP revisions and the drop in consumer spending, especially in the pet industry. Pomboy discusses the disconnect between a thriving stock market and poor consumer sentiment, cautioning against potential financial market corrections. With geopolitical dynamics shifting, she also explores gold's resurgence as a safe investment and the complexities of trading in these volatile times.
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Stagflation Signs
- The economy is showing signs of stagflation: slowing growth and sticky inflation.
- The Atlanta Fed's GDP estimate was revised sharply downwards, reflecting weaker economic data.
GDP Now Drop
- The sharp drop in the Atlanta Fed's GDP now estimate might be due to increased trade deficits.
- This could be caused by businesses front-running tariffs, but broader economic weakness is also a factor.
Consumer Recession
- Consumers have been in recession for over two years, with declining unit sales and negative pet spending.
- Consumer sentiment is worsening due to sticky inflation and deteriorating job prospects.