⚠️ The Fed may be trapped now
🇺🇸 Growth is slowing while inflation keeps rising.
💣 That’s the definition of stagflation.
Latest data 👇
📉 GDP Q1: 2.0% (below expectations)
📈 Core PCE: 4.3% (huge jump from 2.7%)
💼 Jobless claims still strong
And that’s the problem.
👇 Strong jobs mean: The Fed can’t cut rates easily.
👇 Rising inflation means: The Fed can’t ease policy either.
💣 Oil above $120 is now feeding directly into inflation pressure across the economy.
Markets are realizing the Fed may have no easy solution left.